External Affairs Minister S. Jaishankar has firmly defended India's continued oil imports from Russia, amidst growing concerns and pressure from the United States. He highlighted that India is not the largest purchaser of Russian oil, pointing to China and the European Union as bigger buyers. Jaishankar emphasized that India's actions are aimed at stabilizing global energy markets, a goal that the U.S. itself has encouraged.
India's Perspective on Energy Security
India, the world's third-largest oil consumer, relies heavily on imports to meet its energy needs. With nearly 85% of its crude oil requirements sourced from other countries, India's economy is particularly sensitive to global oil prices. Jaishankar has articulated that procuring affordable energy is a national imperative for sustaining economic growth and controlling inflation. The discounted Russian crude has allowed Indian refiners to manage domestic fuel costs effectively.
The US Stance and Potential Tariffs
Despite India's rationale, the U.S. has expressed its displeasure over India's increasing reliance on Russian oil. Some U.S. officials view India's actions as undermining the sanctions imposed on Russia for its invasion of Ukraine. This has led to the threat of increased tariffs on Indian goods, potentially impacting India's exports to the U.S. President Trump's administration has already imposed a 25% tariff on Indian goods and has threatened to double it, a move perceived by India as "unfair, unjustified, and unreasonable".
Impact on Global Energy Dynamics
India's increased purchase of Russian oil has significantly altered global energy trade patterns. Russia has become India's top oil supplier, with imports reaching 2 million barrels per day in August 2025, constituting 38% of India's total crude imports. This shift has affected smaller suppliers from America and Africa, as Russian oil, offered at discounted prices, replaced higher-priced or geographically distant shipments. While Russia's dominance has reshaped trading dynamics, major suppliers from the Middle East, such as Iraq, Saudi Arabia, and the UAE, have largely maintained their positions.
India's Strategic Balancing Act
India's energy policy is guided by diversification and energy security. By increasing Russian supplies, India aims to reduce its dependence on West Asian suppliers and navigate an uncertain global market. This strategy reflects India's broader geopolitical approach of maintaining strategic autonomy and balancing relationships with various global powers.
The Road Ahead
Despite U.S. pressure, India has not signaled any intention to cut off Russian oil imports. Russia, on the other hand, has voiced its support for India, criticizing the U.S.'s "double standards". As India navigates this complex situation, it is also exploring ways to diversify its energy mix, including increasing oil imports from the U.S.. In the first quarter of FY2025-26, Indian crude purchases from America jumped 114% to $3.7 billion. India has pledged to boost American energy imports to $25 billion by 2030. Furthermore, India intends to invest in the maintenance, repair and financing of undersea cables in the Indian Ocean, using trusted vendors. The leaders also recognized the need to build new plurilateral anchor partnerships in the Western Indian Ocean, Middle East, and Indo-Pacific to grow relationships, commerce and cooperation across defense, technology, energy and critical minerals and expect to announce new partnership initiatives across these sub-regions by fall of 2025.
The situation remains fluid, with the potential for further trade actions and diplomatic pressure. The decisions made by India will not only impact its own energy security but also have broader implications for global energy markets and international relations.
