Key Takeaways
- India has confirmed its intention to continue purchasing oil from Russia, despite threats of penalties from former US President Donald Trump, as reported by The New York Times.
- This decision underscores India's commitment to its "time-tested" partnership with Moscow and its market-driven approach to energy imports, prioritizing affordable crude for its large population.
- The move comes amidst a 25% US tariff blow and veiled threats from Trump, highlighting a potential point of irritation in India-US relations.
Indian officials have stated that the nation will persist in buying oil from Russia, even in the face of potential penalties outlined by former US President Donald Trump. This stance was conveyed to The New York Times on Saturday. India, as the world's third-largest oil importer, has significantly increased its reliance on Russian crude since the conflict in Ukraine began, with Russian oil accounting for 35% to 40% of India's oil imports in 2024, a substantial rise from 3% in 2021.
India's Ministry of External Affairs spokesperson, Randhir Jaiswal, reaffirmed New Delhi's "time-tested" partnership with Moscow, emphasizing that India's energy choices are guided by market dynamics and national interest. The country's primary justification for these purchases is the need to secure the cheapest available crude to protect its millions of citizens from escalating energy costs.
The decision to continue Russian oil imports comes amidst a backdrop of escalating pressure from the US, including a 25% tariff on Indian goods and unspecified penalties threatened by Donald Trump, who has urged countries to halt purchases of oil from Moscow. While some Indian state refiners reportedly paused Russian oil purchases briefly due to narrowing discounts and Trump's warnings, officials maintain that no final decision to cease purchases has been made. This ongoing situation highlights a complex geopolitical balancing act for India, as it navigates its strategic ties with both Russia and the United States.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.