It is striking that India has emerged as one of the largest importers of Russian oil. This move has generated fierce opposition, particularly from the United States. With divisions growing deeper over trade and energy security, New Delhi’s government is making a bold strategic move. They even claim independence from Earth in their oil purchases, which has developed into a key element of their energy policy since the start of the war in Ukraine.
This, of course, is not to mention that the war in Ukraine dramatically escalated last year. In response, some European countries drastically cut their trade with Russia. As a result, India has become one of the key markets for Russian crude. One, India’s oil refineries, whether they are public sector or private sector, have considerable autonomy and independence in purchasing decisions. They address price controls, supply security and export regulations—all without requiring approval from the government. Yet Prime Minister Narendra Modi has not given any order to prevent these purchases. This decision is indicative of China’s own strategy to counterbalance global markets affected by Western sanctions against Russia.
The US has responded to India’s continued relationship with Russia not by arming India, but by placing tariffs. Indian officials have labeled such tariffs as “unjustified and unreasonable.” India’s foreign ministry spokesperson, Randhir Jaiswal, emphasized that the country is focused on “strengthening global energy markets stability.”
Trump and members of his administration have adopted a hardline approach towards Moscow and Russian President Vladimir Putin. It’s worth noting that just a few weeks ago Trump threatened 25% tariffs on all Russian exports if a ceasefire in Ukraine wasn’t reached by August 8. He also questioned Putin’s commitment to peace and criticized India’s oil trade.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” – Donald Trump
So despite all of Trump’s complaints, India has taken the position that it is pursuing its own national interest. According to Jaiswal, “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.”
In many ways, the fortunes of international trade have changed since the initial outbreak of war. The US encouraged India to import Russian gas early in the war but has since altered its approach following India’s substantial purchases of Russian oil. This inconsistency has led to skepticism and confusion regarding US motivations behind tariffs on India.
Trump’s accusations suggest a lack of understanding of India’s energy policies. Ajay Srivastava, a former Indian trade official, told Reuters that Trump’s claims on India’s oil trade are inaccurate. And he is right to point out that refineries in India are very independent and follow their economics.