India Continues Oil Imports from Russia Despite Trump's Claim of Halt

New Delhi, August 2, 2025 — In contrast to recent remarks by former U.S. President Donald Trump, India has not stopped purchasing crude oil from Russia. According to government and industry sources, Indian oil companies are continuing to procure Russian crude based on strategic, economic, and logistical considerations — a move that aligns with international trade norms and energy security goals.

Trump’s Claim and Tariff Threat

On July 30, former U.S. President Donald Trump announced a 25% tariff on Indian goods, citing India’s continued oil imports from Russia as a reason. The tariff, initially set to be implemented on August 1, was later deferred to August 7. Trump justified this decision by alleging that India's purchases support Russia’s military campaign in Ukraine. He even claimed that India had now agreed to halt these imports.

In a follow-up statement, Trump said, “I’ve heard that India will no longer buy oil from Russia. I’m not sure how accurate that is, but it sounds like a good move.” However, this claim lacks official confirmation or evidence.

India’s Response: No Official Halt in Russian Oil Purchases

Responding cautiously, Ministry of External Affairs spokesperson Randhir Jaiswal said, “India makes energy decisions based on global market conditions and national interest. As of now, I have no information confirming such a development.”

Sources close to Indian oil companies confirmed that the country continues to buy oil from Russian suppliers. The decision is based on market pricing, crude quality, transportation logistics, and overall economic factors.

Why India Still Buys Russian Oil

Russia remains the world’s second-largest crude oil producer, with daily output of around 9.5 million barrels — roughly 10% of global demand. It exports about 4.5 million barrels of crude oil and 2.3 million barrels of refined products each day. Since the outbreak of the Russia-Ukraine conflict in 2022, global oil prices have been volatile, peaking at $137 per barrel in March 2022.

India, which imports about 85% of its oil and ranks as the third-largest energy consumer globally, continued to purchase Russian oil to maintain domestic price stability. At a time when OPEC nations reduced output, affordable Russian oil helped India manage inflation while maintaining energy supplies.

Sources told news agency ANI that Russian oil was never under a complete ban. Instead, it was subject to a G7 and European Union price-cap mechanism, which aimed to reduce Russia’s revenues without disrupting global energy flows. Indian refiners, in compliance with these international norms, adhered to the $60 per barrel price cap recommended by the U.S. Treasury.

India’s Role in Global Energy Stability

Analysts argue that India played a stabilizing role in global energy markets by continuing Russian oil purchases. Without this, crude prices could have exceeded the 2022 high of $137 per barrel, leading to an even greater global inflation crisis. The government has reiterated that all oil transactions are legal and within global frameworks.

Sources emphasized that while the U.S. has imposed sanctions on oil from Iran and Venezuela, no such legal restriction exists for Russian oil — a fact that distinguishes India’s current trade position from other sanctioned nations.

Europe’s Continued Energy Trade with Russia

Notably, while India was purchasing Russian oil, the European Union was importing significant amounts of liquefied natural gas (LNG) from Russia. In fact, the EU accounted for 51% of Russia’s total LNG exports, followed by China (21%) and Japan (18%). Similarly, for pipeline gas, the EU imported 37%, followed by China at 30% and Turkey at 27%.

This highlights a broader trend — that global energy trade with Russia remains complex and multi-faceted, with many major economies continuing transactions under price-cap frameworks or other conditional arrangements.

Conclusion

Despite political rhetoric, India has made it clear that its oil procurement decisions are rooted in pragmatic considerations. The country’s continued engagement with Russian oil suppliers is consistent with international norms and is aimed at ensuring energy security and economic stability. Claims suggesting a halt in these imports remain unverified and appear more political than factual.