Russia Vows to Keep Supplying Oil to India Despite US Tariff Threats
NEW DELHI, INDIA — WEB DESK: Russia has pledged to continue supplying crude oil to India despite threats of additional US tariffs and secondary sanctions, underscoring the strength of energy ties between Moscow and New Delhi as global oil markets face heightened geopolitical uncertainty.
Russian Ambassador to India Denis Alipov said Moscow was prepared to provide India with “as much oil as it needs,” according to an Express Urdu report published Tuesday. He dismissed US pressure over purchases of Russian crude as a tactic intended to influence India’s energy decisions.
Russia maintains that New Delhi buys its crude to meet India’s own energy requirements and protect its national interests rather than to provide political or economic support to Moscow.
Russia Remains Key Oil Supplier to India
Despite Western pressure, Russia remains the dominant supplier of crude to the world’s third-largest oil-consuming country.
India’s dependence on Russian crude has remained substantial even as New Delhi has expanded the number of countries from which it purchases oil.
During the six months of the Iran war, India sourced crude from 31 countries, yet Russia’s share climbed to about 47%, according to recent trade analysis.
The figures demonstrate how Russia has retained a central position in India’s energy mix despite New Delhi’s attempts to diversify its sources.
Russian crude has become particularly important to Indian refiners since Moscow redirected significant energy exports toward Asian markets following Western sanctions linked to the Ukraine war.
Indian Imports Fell 26% in August
However, Russian shipments to India did decline sharply last month.
India’s imports of Russian crude fell approximately 26% in August compared with July, according to current market data. The decline was linked primarily to reduced Russian supply availability and stronger competition from Chinese refiners.
Maintenance shutdowns at some Indian refineries also contributed to weaker demand.
The decline therefore does not necessarily indicate that India is abandoning Russian crude in response to US pressure.
Russia remained India’s leading crude supplier despite the monthly fall.
US Pressure Remains Key Risk
Washington has sought to increase pressure on countries continuing to purchase Russian energy, with proposals including significantly higher tariffs against buyers of Russian crude.
The Express report says the United States has considered measures potentially reaching 100% tariffs against countries buying Russian oil.
Such measures could create a difficult balancing act for New Delhi.
India has consistently defended its energy purchases as decisions driven by national interest, affordability and security of supply. Russia, meanwhile, argues that Washington is attempting to dictate the commercial choices of other countries.
Any escalation in US trade measures could therefore affect not only Russia-India energy relations but also the wider economic relationship between Washington and New Delhi.
Russia and India Strengthen Payment System
Moscow and New Delhi have also made progress in reducing financial obstacles to bilateral commerce.
Russia and India have established a payment infrastructure in which roubles and rupees account for approximately 96% of bilateral trade, according to a senior Russian banker cited by Reuters last week.
The arrangement reduces dependence on traditional Western financial channels and makes bilateral trade less vulnerable to some external restrictions.
The development is particularly significant for oil because energy represents a major component of trade between the two countries.
India Needs Reliable Crude Supplies
India’s position is also shaped by its structural dependence on imported energy.
The country imports the overwhelming majority of the crude it consumes, making access to reliable and competitively priced supplies an important economic priority.
At the same time, the global oil market has become increasingly volatile because of disruptions in the Middle East.
Brent crude climbed above $98 a barrel on Tuesday as markets assessed the possibility of a prolonged conflict involving Iran and the United States and continued disruption to regional energy supplies.
The Strait of Hormuz crisis has reduced Middle Eastern oil flows, increasing the strategic importance of alternative suppliers for major Asian consumers.
That environment could make Russian crude even more important to India’s energy-security calculations.
Russia-India Oil Trade Faces Geopolitical Test
The dispute illustrates the increasingly complicated relationship between energy security and geopolitics.
Washington wants to restrict revenues generated from Russian energy exports, while Moscow is seeking to maintain and expand access to Asian markets.
India, meanwhile, is attempting to secure sufficient crude supplies while maintaining important strategic relationships with both Russia and the United States.
Alipov’s latest statement signals that Moscow does not intend to voluntarily reduce oil supplies to India because of American pressure.
But the actual trajectory of Russian shipments will depend on several factors, including Russian export availability, Chinese demand, crude prices, Indian refinery requirements and any new US trade or sanctions measures.
For now, Russia remains a crucial supplier to India — and Moscow says it is prepared to continue providing New Delhi with as much crude as the Indian market requires.
