India will continue purchasing oil from Russia despite U.S. President Donald Trump’s mounting threats of penalties, Indian government sources confirmed to Reuters on Saturday, signalling New Delhi’s intent to prioritise energy security and economic stability over geopolitical pressure.
This decision comes amid heightened tensions between India and the United States following Trump’s imposition of a 25% tariff on Indian exports and a warning last month via his Truth Social account that additional penalties would follow for countries purchasing Russian arms and oil. On Friday, Trump suggested that India had ceased Russian oil imports, a claim now contradicted by Indian officials.
“There are long-term oil contracts in place. It is not so simple to just stop buying overnight,” according to newsmen. Another added that India’s purchases had helped prevent a sharp rise in global oil prices despite Western sanctions on Russia.
While the U.S. has sought to curb Russian oil revenues in response to the Ukraine conflict, Russian crude itself is not subject to direct sanctions. India, the world’s third-largest oil importer, has continued to buy Russian oil at discounted rates, reportedly within the price cap established by the European Union.
Foreign ministry spokesperson Randhir Jaiswal reaffirmed India’s strategic partnership with Russia in a Friday press briefing. He emphasised that India considers market availability, pricing, and global conditions in its energy sourcing decisions.
“Our relationship with Russia is steady and time-tested,” Jaiswal stated, while avoiding a direct reference to the latest U.S. warnings. The White House has not responded to questions regarding India’s stance.
President Trump has made ending Russia’s war in Ukraine a core foreign policy objective since returning to office in January. He has threatened 100% tariffs on imports from countries continuing to trade in Russian oil unless Moscow agrees to a significant peace settlement.
This position has increasingly placed Washington at odds with India, which now relies on Russia for about 35% of its total oil imports. From January to June 2025, India imported 1.75 million barrels per day of Russian crude—up 1% from the same period last year.
However, Indian state-owned refiners, including Indian Oil Corp, Hindustan Petroleum, Bharat Petroleum, and Mangalore Refinery Petrochemical Ltd, have reportedly reduced their Russian crude purchases recently. The pullback, according to Reuters, is driven not by political pressure but by reduced discounts and tighter Russian exports that have narrowed price advantages.
Refiners have not sought new Russian oil deals in recent weeks, four industry sources said, citing the least favourable pricing since sanctions began in 2022.
Meanwhile, Nayara Energy, a private refinery majority-owned by Russian interests including Rosneft, has come under new pressure after being sanctioned by the European Union. Its CEO resigned last week, and three of its vessels have been unable to discharge oil product cargoes due to the fresh EU restrictions.
India’s continued engagement with Russia underscores its delicate balancing act—maintaining ties with Western partners while safeguarding its economic and strategic interests. With global energy markets still volatile and domestic energy needs rising, India is unlikely to make abrupt shifts in its sourcing policy.
Reuters/s.s