As tensions rise between the U.S. and India, former U.S. President Donald Trump has recently targeted India over its import of Russian oil, raising questions about who is truly buying what. Trump's statements and proposed tariffs have sparked debate, with many pointing out the complexities of the global energy market and potential double standards.
Trump has accused India of "buying massive amounts of Russian oil and selling it on the open market for big profits," further stating that India doesn't care "how many people in Ukraine are being killed by the Russian War Machine". Because of this, he has threatened to increase tariffs on Indian goods substantially.
However, these claims and threats have been met with criticism and scrutiny. A recent report by the Global Trade Research Initiative (GTRI) challenges Trump's narrative, stating that China is actually the primary purchaser of Russian oil, with imports valued at $62.6 billion in 2024, exceeding India's $52.7 billion. The GTRI report also contests Trump's claim that India is reselling crude oil, clarifying that India only exports refined petroleum products, a standard practice for energy-importing nations.
India has defended its energy strategy, asserting that its purchases of crude oil from Russia are "a necessity compelled by global market conditions" and not a political endorsement of Moscow. External Affairs Ministry (MEA) also stated that the EU's trade with Russia in 2024 was significantly larger than India's, and the U.S. continues to import uranium, palladium, and fertilizers from Russia. Trump, when asked about US imports from Russia, said he was unaware of it and would have to check.
Since the start of the war in Ukraine, India has increased its reliance on Russian oil, now depending on Russia for 35% of its total crude needs. This shift occurred as Europe reduced its dependence on Russian energy, leading Russia to redirect its exports to Asia. India, being the world's third-largest oil importer, has become the biggest buyer of Russian crude since 2022, purchasing as much as 2 million barrels per day. This has helped India manage inflation and cut import bills.
India's energy demand is rapidly growing, and it relies heavily on imports to meet its needs. Over 80% of India's energy needs are met by coal, oil, and solid biomass. The country's energy consumption has more than doubled since 2000, driven by a growing population and rapid economic growth. India aims to achieve net-zero carbon emissions by 2047 and increase its reliance on renewable energy sources. However, it faces challenges in reducing its dependence on fossil fuels due to economic factors, energy security concerns, and technological limitations.
The EU has also been importing fossil fuels from Russia. Despite a range of sanctions, EU member states spent EUR 7 billion on Russian LNG in the third year of the invasion, with volumes rising by 9% year-on-year. The EU's reliance on Russian gas has decreased from 45% in 2021 to 18% in 2024. The EU has proposed a plan to gradually stop the import of Russian gas and oil by the end of 2027. Imports from Russia fell by 86 per cent from the first quarter of 2022 through the first quarter of this year.
The U.S. has also been importing goods from Russia, including uranium, fertilizers, and palladium. Despite a ban on Russian crude oil, liquefied natural gas, and coal, the U.S. has continued to import these other commodities.
While Trump focuses on India's Russian oil imports, it's important to consider the broader context of global energy trade. China's imports from Russia are higher, and the U.S. and EU continue to import certain goods from Russia. India maintains that its energy purchases are driven by economic necessity and that it is not alone in trading with Russia. India's Ministry of External Affairs (MEA) had issued a statement a day earlier, defending its Russian oil imports and accusing the US and European Union of hypocrisy.
