Russia Ensures Steady Oil Supply to India Despite U.S. Tariff Pressures

Russia has reaffirmed its commitment to supplying oil to India at a discounted rate, even as the United States escalates tariffs in a bid to curb the partnership. Moscow’s assurance underscores the resilience of the energy relationship, which has grown into one of the most significant aspects of India–Russia trade. Russian envoy Roman Babushkin confirmed that shipments to India will continue “at approximately the same level,” while Deputy Trade Representative Evgeniy Griva highlighted a discount of around five percent offered to Indian refiners. These supplies are sustained through what Russian officials describe as “special mechanisms,” a system designed to bypass restrictions imposed by Western sanctions.

Prime Minister Narendra Modi with Russian President Vladimir Putin. (AP file photo) | News18

India’s Rising Reliance on Russian Oil

In just a few years, Russia has transformed from a marginal supplier to one of India’s primary energy partners. Before the Ukraine conflict, Russian crude accounted for less than one percent of India’s imports; today, it makes up nearly forty percent. This dramatic shift has allowed India to secure cheaper fuel for its vast domestic needs while giving Russia a crucial market amid Western embargoes. However, July saw a temporary dip of more than twenty percent in Russian oil imports, as Indian refiners briefly turned to Middle Eastern suppliers when discounts narrowed and seasonal demand softened.

Navigating Sanctions and Trade Barriers

The growing energy partnership has not been without complications. Indian refiners like Nayara Energy—partly owned by Russian entities—have increasingly relied on “dark fleet” tankers to transport crude in defiance of sanctions. Despite logistical hurdles, bilateral trade between India and Russia has surged to nearly seventy billion dollars in 2024–25. Moscow, while denouncing U.S. penalties as “unlawful competition” and “double standards,” has also opened its markets further to Indian exports in a show of solidarity. Russian officials argue that if Washington restricts Indian goods, they will be welcomed in Russia without hesitation.

Washington’s Hardline Approach

The United States has taken a sharp stance against India’s energy dealings with Moscow. The Trump administration first imposed a twenty-five percent tariff on Indian goods and followed it with an additional twenty-five percent penalty specifically targeting oil purchases from Russia. White House adviser Peter Navarro went further, accusing New Delhi of indirectly financing Russia’s war effort by refining discounted crude and re-exporting petroleum products. In Washington, legislators are even considering a “Sanctioning Russia Act” that could push tariffs up to five hundred percent for countries unwilling to reduce Russian energy imports.

India’s Diplomatic and Economic Response

For New Delhi, the stakes are high. Analysts warn that halting Russian oil imports could increase India’s annual fuel bill by as much as twelve billion dollars, creating inflationary pressure on its economy. Indian officials have pushed back against American tariffs, describing them as unfair and unjustified, while reiterating that energy security remains a sovereign priority. At the same time, India has begun recalibrating its foreign policy to safeguard its interests. Prime Minister Narendra Modi is preparing for his first visit to China in seven years, a move that coincides with renewed discussions on a Russia–India–China trilateral framework. Moscow has also announced that President Vladimir Putin will visit New Delhi later this year to reinforce bilateral ties.

A Strategic Balancing Act

The evolving situation highlights India’s delicate balancing act. On one hand, New Delhi values its growing partnership with Washington in defense and technology. On the other, Russian crude provides affordable energy that is essential for India’s economic stability, while Moscow remains a long-standing defense partner. As tariffs strain U.S.–India relations, New Delhi is quietly deepening its Eurasian engagements, signaling that it is unwilling to be pressured into abandoning beneficial energy arrangements.

Conclusion

The oil trade between Russia and India has become more than a commercial arrangement—it now sits at the heart of a global power struggle. By continuing discounted oil supplies, Moscow has positioned itself as a reliable partner, while Washington’s tariffs reflect an attempt to enforce geopolitical choices through economic coercion. For India, the challenge is to preserve its strategic autonomy: securing affordable energy for its population, maintaining trade diversification, and navigating a complex diplomatic environment. How New Delhi balances these competing pressures will not only shape its economy but also define its role in the emerging multipolar order.

(Sources: News18, India TV News, NDTV)