Indian officials said Saturday that the country will continue purchasing discounted oil from Russia, despite threats of additional penalties from US President Donald Trump.
The statement reflects New Delhi’s consistent stance on its energy policy, even as geopolitical tensions rise.
The comments come days after Trump indicated potential punitive action against India for continuing to import Russian crude, citing national and trade interests.
However, senior Indian officials clarified that there has been no policy change or instruction given to state-run oil companies to reduce imports.
Trump’s warning and India’s response
Earlier this week, President Trump announced plans for a new round of tariffs and hinted at additional penalties targeting India if it did not scale back its Russian oil imports.
Speaking to reporters on Friday, he referenced reports suggesting India had reduced its Russian oil purchases.
“I understand that India is no longer going to be buying oil from Russia,” Trump said. “That’s what I heard. I don’t know if that’s right or not. That is a good step. We will see what happens.”
Despite the comments, Indian officials rejected the suggestion that there had been any reduction based on foreign pressure.
One official noted that the government had not issued any directive to oil companies to limit or halt imports from Russia.
While Trump stopped short of specifying the nature of the penalty India might face, analysts view his comments as part of broader trade negotiations.
Some speculate the rhetoric may be linked to ongoing efforts between Washington and New Delhi to conclude the early phases of a bilateral trade agreement.
India’s growing Reliance on Russian oil
Since the onset of the war in Ukraine, India has significantly increased its purchases of Russian oil.
Before the conflict began, Russia accounted for less than one percent of India’s crude imports.
Today, it supplies over one-third of India’s total oil needs, making India the second-largest buyer of Russian oil globally, after China.
India now imports over two million barrels of Russian crude per day, benefiting from favorable pricing.
This trend has drawn criticism from Western nations concerned about continued financial flows to Russia, but India has maintained that its energy security and economic interests come first.
In the initial months following the Russian invasion, India faced mounting pressure to reduce its economic engagement with Moscow.
However, that pressure began to wane as the war continued and energy markets stabilized.
US treasury endorsed price cap strategy
By early last year, the United States had softened its stance, signaling acceptance of India’s approach to buying Russian oil under the price cap mechanism agreed upon by the European Union and G7 nations.
The strategy aimed to keep Russian oil in global circulation while limiting revenue to Moscow.
US officials, including then-Ambassador to India Eric Garcetti, acknowledged that India was adhering to the international framework.
“They bought Russian oil because we wanted somebody to buy Russian oil at a price cap; that was not a violation,” Garcetti said. “It was the design of the policy.”
As global oil markets continue to adjust, India’s energy strategy remains anchored in affordability and supply stability — even if that means facing diplomatic pushback.
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