India will continue buying oil from Russia, despite threats of penalties from U.S. President Donald Trump, according to Indian officials speaking anonymously to Reuters.
Trump recently imposed a 25% tariff on Indian exports and warned of further penalties for purchasing Russian oil and weapons. On Friday, he claimed India had stopped Russian oil imports, a claim Indian sources deny.
“These are long-term contracts,” one official explained. “It’s not possible to stop overnight.”
Officials argued that Indian imports of discounted Russian oil have helped keep global prices stable. While Russia faces Western restrictions, its crude is not subject to direct sanctions, and India buys at a price below the EU’s price cap.
The New York Times also reported no change in India’s oil policy, though the Indian government hasn’t officially commented. Foreign Ministry spokesperson Randhir Jaiswal reiterated India’s strategic ties with Russia and said energy decisions are based on market conditions.
Trump, who has made ending the war in Ukraine a top priority, has threatened 100% tariffs on countries that continue buying Russian oil. Russia remains India’s top oil supplier, accounting for 35% of its imports.
Despite government support, Indian state refiners reportedly paused Russian oil purchases in July after discounts fell to their lowest level since 2022. Meanwhile, Nayara Energy, partly owned by Russian firms, was recently sanctioned by the EU, delaying shipments and prompting its CEO’s resignation.
