India and Russia’s relationship, suddenly surging in salience, is of growing concern to the United States. U.S. Secretary of State Marco Rubio has even called this link a major “point of irritation” in Indo-US ties. The situation reflects the complexities surrounding India’s energy needs amid ongoing geopolitical tensions.
Since the start of the Ukraine war, India has significantly increased its purchases of discounted Russian crude oil. Much of this increase can be attributed to the sanctions that Western nations have placed on Russia. The surge, remarkable by any measure, has alarmed Washington. Rubio speakers more generally express frustration with India’s continued reliance on Russian oil — particularly when there are plenty of other suppliers.
India has not yet released an official reaction to Rubio’s statement. But the country has no qualms about standing its ground on what some insist is a brilliant energy procurement strategy. Officials argue that as a major energy importer, India must prioritize securing the most affordable crude available in order to shield millions of impoverished citizens from escalating costs.
The Indian Petroleum Ministry has firmly rejected the allegations that it ordered state-owned refiners to stop buying Russian crude. At the same time, India’s reliance on Russian oil has increased exponentially. In 2024, it accounted for 35% to 40% of the country’s total oil imports, increasing dramatically from just 3% in 2021.
Rubio acknowledged India’s motivations for purchasing Russian oil, citing the nation’s vast energy requirements and the discounted prices offered by Moscow. He stated, “I think what you’re seeing the President express is the very clear frustration that with so many other oil vendors available, India continues to buy so much from Russia.”
Indian negotiators are bracing for possible U.S. sanction retaliation. In July, Petroleum Minister Hardeep Singh Puri stated that if India’s access to Russian supplies is cut off, it would not be difficult, economically, mainly logistically, for India to source the petroleum from elsewhere. India had been on the offensive in diversifying its oil supplier base. It has raised the number from 27 to more than 40 countries to diversify its energy supplier base.
Analysts at CareEdge have assessed that any diversification away from Russian oil imports would likely have a minimal impact on India’s current account deficit. The administration’s legal rationale continued, explaining that such an economic disruption would be highly unlikely were the U.S. to change its oil sourcing strategies.
Even former U.S. President Donald Trump has taken interest in this debate over India’s oil imports. Most recently, Trump threatened to slap 25% tariffs on Indian products over its ongoing purchase of Russian oil and weaponry. He remarked, “They can take their dead economies down together, for all I care,” referencing the potential economic fallout of such ties.
Dmitry Medvedev, Deputy Chairman of Russia’s Security Council reacted to Trump’s threats of “dead economies” with his own threats. He stated, “As for the talk about the ‘dead economies‘ of India and Russia… maybe he should recall his favourite movies about ‘the walking dead,’ and remember how dangerous the so-called ‘Dead Hand,’ which doesn’t even exist, could be.”