India intends to continue its oil imports from Russia, despite threats of tariffs and penalties from U.S. President Donald Trump. Government sources have stated that India will maintain its position, citing long-term contracts and the benefit of avoiding global price surges.
Trump's threats include a new 25% tariff on India's exports to the U.S., as well as additional penalties specifically related to the purchase of Russian arms and oil. He also suggested imposing 100% secondary tariffs on Russian oil if Moscow does not negotiate an end to the war in Ukraine by August 8, 2025. On August 1, 2025, Trump stated that he had heard India would no longer be buying Russian oil.
However, Indian government sources have refuted these claims, asserting that there would be no immediate changes to India's oil import policy. One source emphasized the long-term nature of these oil contracts, making it difficult to halt purchases abruptly. Another source justified the imports by saying that they helped to prevent a global surge in oil prices, which have remained stable despite Western restrictions on the Russian oil sector. Furthermore, unlike Iranian and Venezuelan oil, Russian crude is not subject to direct sanctions, and India is purchasing it below the price cap set by the European Union.
India's foreign ministry spokesperson, Randhir Jaiswal, stated that India has a "steady and time-tested partnership" with Russia, and that its relationships with other countries are independent and shouldn't be viewed through the lens of a third country.
While the government is maintaining its partnership, some state refiners in India have paused Russian oil purchases because of narrowing discounts and EU sanctions on Nayara Energy. Reuters reported that Indian state refiners had ceased purchasing Russian oil the past week, following a narrowing of discounts in July. Bloomberg reported on August 1, 2025, that several oil tankers carrying Russian crude were idling off India's western coast as the nation's refiners sought alternatives.
India is the second-largest buyer of Russian oil, after China. After Moscow's full-scale invasion of Ukraine in 2022, India significantly increased its imports from Russia, taking advantage of large discounts and declining European demand. From January to June of this year, India imported approximately 1.75 million barrels of Russian oil per day, a 1% increase from the previous year.
Analysts at Kpler have suggested that the decline in Russian crude imports to India in July coincides with a period when India typically reduces oil purchases due to the monsoon season and scheduled refinery maintenance.