Economy

Russia to Continue Oil Sales to India Despite US Tariffs, Citing Strategic Partnership and Discounts

Published On Thu, 21 Aug 2025
Omkar Pillai
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Russia has assured that it will maintain oil exports to India despite increasing pressure and tariff threats from the United States. In recent statements made in New Delhi, Russian officials emphasized the strength of India-Russia energy ties and highlighted a special mechanism designed to ensure uninterrupted crude supplies even amid external sanctions and 25–50% tariffs imposed by the US on Indian imports.

Evgeny Griva, Russia’s Deputy Trade Representative in India, confirmed that India’s imports of Russian crude are expected to remain at current levels. “There will be around a 5% discount on Russian crude for India, subject to negotiations,” he said, pointing out that Russia sells oil to India at a notable price advantage compared to other sources. This discount and existing trade complementarity, Russia believes, position India as a key and growing consumer of its oil.

Despite Washington’s attempts to discourage India’s purchases of Russian crude—part of broader sanctions aimed at curtailing Russia’s revenues amid the Ukraine conflict—New Delhi has defended its right to buy from the most affordable sources, calling the US tariffs “unreasonable.” The Indian government has also signaled willingness to expand bilateral trade with Russia, potentially reaching $100 billion in annual turnover by 2030.

Roman Babushkin, the Russian Deputy Chief of Mission in India, was vocal in criticizing the US stance, labeling the sanctions “unjustified” and “unilateral.” He also expressed confidence that India-Russia energy cooperation will continue unabated despite external pressure. Babushkin noted that while the situation is challenging for India, Russia remains a reliable partner, and these sanctions largely harm those imposing them.

India’s state-owned refiners have reportedly resumed Russian oil imports after a short pause due to US tariff pressures. Deliveries of Russian Urals crude scheduled for September and October 2025 are expected to proceed, reinforcing India’s position as one of Moscow’s largest oil buyers alongside China.

This ongoing energy relationship highlights the complicated geopolitics of global energy markets, where economic pragmatism intersects with international diplomatic tensions. For India, securing affordable and reliable energy supplies remains a national priority, while Russia counts on sustained demand from Asia to offset Western sanctions.

Disclaimer: This image is taken from Reuters.