US President Donald Trump’s attempt to choke off India’s oil trade with Russia through punishing tariffs is backfiring, as New Delhi prepares to buy even more discounted crude from Moscow.
According to Bloomberg, Russian Urals crude is being offered to India at $3 to $4 per barrel below Brent for shipments in late September and October, compared with a $2.50 gap just weeks ago and barely $1 in July.
Between August 27 and September 1, state-run and private refiners in India secured 11.4 million barrels of Russian oil immediately after US tariffs came into effect.
“Indian refiners have continued to take Russian oil, despite a brief pause in early August, and cheaper Urals are likely to attract strong buying interest,” Bloomberg reported. Trade insiders told Reuters that Indian refiners plan to boost Russian oil purchases in September by 10 per cent to 20 per cent from August, or about 150,000 to 300,000 barrels a day.
Trump Turns Up Heat, India Pushes Back
Trump recently imposed an additional 25 per cent penalty on Indian exports, doubling tariffs to 50 per cent, accusing New Delhi of bankrolling Moscow’s war in Ukraine. White House adviser Peter Navarro escalated criticism, calling the Russia-Ukraine conflict “Modi’s war” and branding India a Kremlin “laundromat” for refining and re-exporting Russian crude.
ALSO READ: Azerbaijan accuses India of blocking SCO Membership over ties with Pakistan
External Affairs Minister S. Jaishankar countered, arguing that India’s trade with Russia stabilises global oil markets and is an international necessity. Union Oil Minister Hardeep Singh Puri added, “nothing could be further from the truth,” asserting that India’s dealings with Moscow are transparent and lawful.
At the Shanghai Cooperation Organisation summit in China earlier this week, Prime Minister Narendra Modi described India’s ties with Russia as “special” and endorsed Chinese President Xi Jinping’s call to strengthen partnerships over rivalries.
Billions Saved Through Russian Oil Trade
India’s reliance on Russian crude has risen dramatically—from under 1 per cent of total imports in 2022 to nearly 40 per cent by mid-2025. Analysts estimate Indian refiners saved at least $17 billion between April 2022 and June 2025 due to discounted supplies.
India maintains that its imports do not breach international sanctions and has accused the West of hypocrisy, pointing out that both the EU and the US continue to buy Russian goods worth billions.
