India Holds Firm on Russian Oil Imports Despite US Tariff Pressure

New Delhi: India is standing its ground on importing Russian crude oil despite the 25% tariffs imposed by the US starting today. According to government officials and refinery executives, New Delhi is determined to prioritize energy security over trade concessions, following a “country first, commerce later” approach.

Government Sends a Clear Message

Refinery executives revealed there have been no directives from the Indian government to halt Russian crude procurement. Officials, including Prime Minister Narendra Modi, External Affairs Minister S. Jaishankar, and Commerce Minister Piyush Goyal, have emphasized that India will support exporters while resisting external pressure.

“Yielding on oil could set a dangerous precedent and lead to additional demands,” an industry executive noted.

Shifts in Oil Discounts

While September-loading cargoes have seen a slight dip due to tariff uncertainties, the reduction is mainly tied to shrinking discounts now at $1.5–$1.7 per barrel compared to $2.5–$3 in 2024. Executives expect October volumes to rebound if discounts widen again.

Industry’s Strategic View

Industry representatives maintain that while switching to alternate sources of crude is technically possible, it is neither urgent nor economically necessary.

“Russian oil is not sanctioned and will remain in the global market. Adjustments to supply chains will be minimal,” said an executive, highlighting that global supply-demand balance would remain stable.

Trade Talks with the US

The oil trade has become a sticking point in India-US trade negotiations. While Washington seeks to leverage tariffs to pressure India, New Delhi believes maintaining its Russian oil imports is critical to safeguarding national interests, especially amid fluctuating global energy markets.