During his first visit to India in four years, Russian President Vladimir Putin questioned the United States' stance on tariffs and trade, particularly regarding Russian oil imports. Speaking to India Today, Putin highlighted what he sees as a double standard, asking why the U.S. can purchase fuel from Russia while seemingly objecting to India doing the same. He criticized the proposed 50% tariff on Indian goods, deeming it unfair.
Putin's comments come amidst growing concerns over India's increasing role in global markets, especially its energy ties with Russia. He suggested that the tariff moves by U.S. President Donald Trump and pressure from Western nations on India's Russian oil purchases reflect discomfort with India's rising economic influence. Putin stressed that the relationship between India and Russia has been built over decades and remains unaffected by temporary policy shifts in the West. He affirmed that Russia would continue to support India's energy needs, irrespective of outside pressure.
The backdrop to this situation involves tightened checks on the Russian oil price cap by the U.S. and Europe, along with warnings to countries, including India, against dealing with sanctioned tankers. Despite these pressures, Putin stated that energy cooperation between India and Russia remains stable and mutually beneficial. He mentioned a "minor adjustment" in overall trade turnover during the first nine months of the year but dismissed it as a policy shift. Furthermore, Russia is looking to correct its trade imbalance with India and increase imports.
India's reliance on Russian oil has grown significantly, with Russia becoming its top oil import source between April and December 2024. This reliance has made India vulnerable to potential U.S. tariffs, with Trump previously indicating tariffs could increase by 25% to 50% if India continues purchasing Russian oil. Such a move could force Indian refiners to seek alternative suppliers, potentially disrupting the country's energy security and increasing global oil prices.
Despite the potential challenges, India has maintained a clear stance of only purchasing oil that isn't under sanctions or involving sanctioned third parties. However, the pressure from the U.S. has led to some Indian refiners limiting their oil purchases from Russia, impacting Russia's wartime economy. While Modi has insisted that India would continue to buy Russian oil, newly imposed sanctions by the U.S. and EU which threaten companies that buy from Russia have led to a notable slowdown in purchases by the Indian private sector. Meanwhile, in a move seen as an attempt to appease Trump, India has agreed to import more US oil and gas.
Putin's visit to India occurs during politically sensitive times for both nations. India has managed to avoid condemning Russian aggression in Ukraine while advocating for peace. Trade between the two countries has surged, largely due to India's imports of Russian crude, but this has also drawn scrutiny and pressure from the U.S.. The U.S. President's public pressure on Delhi to halt its Russian oil purchases, which culminated in a punishing additional 25% punitive US tariff on Indian imports. In Delhi, which has pursued a multi-alignment foreign policy since independence and reacts poorly to any outside interference, the perceived attempts by Trump to meddle and coerce were met with outrage, resulting in the worst decline in US-India relations in years.
