India affirms its continued purchase of Russian crude oil despite US-imposed tariffs and mounting diplomatic pressure, highlighting a strategic balancing act in a tense international landscape.
India has taken a firm stance on its continued purchase of Russian crude oil, despite escalating tensions with the United States following the imposition of steep tariffs by the Trump administration. Union Finance Minister Nirmala Sitharaman announced in early September 2025 that India’s decisions on oil imports are driven strictly by national interests, emphasising that the country will “undoubtedly” continue buying Russian oil. This declaration comes amid significant pressure from the US, which views India’s purchases as indirectly supporting Russia’s war effort in Ukraine.
President Donald Trump recently labelled India as the largest buyer of Russian oil after China, accusing New Delhi of “fueling the Ukraine war” and warning of potential secondary sanctions. In response, India has defended its sovereign right to determine its energy sources, given that crude oil is a major component of its import bill. Sitharaman pointed out that considerations such as price, logistics, and national benefit guide India’s oil procurement decisions, underscoring that these choices are pragmatic rather than political.
The introduction of a 50 percent tariff by the United States on Indian imports, effective from late August 2025, has further strained bilateral ties. The tariffs target a wide range of Indian export sectors, including leather, chemicals, footwear, gems and jewellery, textiles, and seafood, raising fears of significant disruption to India’s export revenues and manufacturing landscape. Indian market reactions have reflected the uncertainty, with reports indicating a decline as exporters brace for the financial impact.
In light of these challenges, Finance Minister Sitharaman assured that the Indian government is preparing relief measures for exporters affected by these punitive tariffs. Speaking in a televised interview, she promised forthcoming support packages aimed at mitigating the adverse effects of the US tariffs on Indian businesses, though she did not provide detailed specifics at that time. Industry observers view this move as critical to safeguarding India’s export competitiveness and economic resilience.
Meanwhile, the broader geopolitical context reveals shifting allegiances. The backdrop of deteriorating US-India relations has coincided with Prime Minister Narendra Modi strengthening ties with traditional partners China and Russia. Recent diplomatic engagements, including Modi’s meetings with Russian President Vladimir Putin and Chinese President Xi Jinping, signal India’s strategic balancing act in the face of mounting pressure from the United States.
India maintains that its engagement with Russia, including energy imports, is motivated by national self-interest and contributes to stabilising global energy markets. This position contrasts sharply with the US perspective that views such economic ties as undermining international sanctions against Russia following its invasion of Ukraine. The ongoing dispute illustrates the growing complexities of international diplomacy where economic interests, geopolitical strategy, and national sovereignty intersect.
As this situation develops, India’s resolve to pursue its energy and foreign policy priorities, alongside efforts to shield its exporters, highlights the country’s attempt to navigate a challenging international environment marked by protectionist measures and geopolitical rivalry. Whether the US tariffs will prompt a recalibration of policies on either side remains to be seen, but current indications suggest India will continue to assert its autonomy while seeking to cushion the economic blow domestically.
Source: Noah Wire Services
