India Defies Trump Threats to Halt Russian Oil Imports

India has confirmed it will continue importing Russian oil despite recent threats from U.S. President Donald Trump, who warned of new penalties and a 25% tariff on Indian goods. According to reports from The New York Times, Indian government officials stated on August 2 that no directives had been issued to reduce Russian oil imports, reaffirming the country’s commitment to maintaining this energy supply [1]. This stance marks a direct challenge to U.S. policy and highlights India’s refusal to be influenced by external pressures in shaping its energy strategy.

The Indian government has made it clear that its foreign policy and economic decisions are driven by its own strategic interests rather than the influence of third-party nations. In a press conference held on August 1, Foreign Ministry spokesperson Randhir Jaiswal emphasized that India’s relationships are based on mutual benefit and longstanding partnerships. He particularly noted the “steady and time-tested partnership” between India and Russia [1]. Prime Minister Narendra Modi’s administration has not revised its oil policy, signaling a long-term commitment to securing affordable energy supplies.

Trump made the announcement in a press briefing on Friday, suggesting that India might stop buying Russian oil and calling it a “good step.” However, Indian officials quickly refuted this claim, stating that no changes had been made to their import policies [1]. The continued imports are part of a broader pattern of Indian frustration with U.S. policies that have historically disrupted India’s energy planning. For example, U.S. sanctions on Iran and Venezuela have forced India to cut ties with major oil suppliers, causing financial and operational challenges.

India’s reliance on Russian oil has grown significantly since the start of the war in Ukraine. Before the invasion, Russian crude accounted for less than 1% of India’s total oil imports. Today, it makes up over a third, with India now the second-largest buyer of Russian oil after China, importing approximately 2 million barrels per day [1]. This shift has been partly driven by the competitive pricing of Russian crude, as well as India’s desire to diversify its oil supply across over 40 countries.

The U.S. and European countries have attempted to pressure India into reducing its Russian imports, but these efforts have lost momentum over time. Indian officials have consistently maintained that their oil purchases remain within the framework of the G7 and EU price cap policy. U.S. Treasury officials acknowledged last year that India’s approach was working and did not interfere further.

India’s long-term energy strategy now hinges on maintaining stable and cost-effective supply chains with Russia. Senior Indian officials have reportedly expressed concerns that disrupting these long-term contracts and shipping routes would destabilize the economy. Given the volatility of U.S. foreign policy, particularly in energy-related matters, New Delhi remains cautious about aligning its strategy with Washington’s shifting priorities.

Trump has not specified the exact nature of the penalties India may face, leaving the threat vague. Some Indian analysts speculate that the warning may be more about U.S. frustration with Russia’s slow progress in Ukraine than a direct issue with India’s oil imports. Others suggest it could be part of broader trade negotiations between the two countries [1].

India’s message remains clear: it will not alter its energy strategy simply because of U.S. political pressure. The country’s government continues to prioritize energy security and cost efficiency, even at the risk of diplomatic friction with Washington.

Source: [1] India confirmed it will continue importing Russian oil despite Trump’s threats (https://coinmarketcap.com/community/articles/688e23347a52aa3997830f46/)