——————————India Prepares to Trim Russian Oil Imports Amid Tariff Pressures
New Delhi, August 8, 2025 — In response to escalating U.S. trade tensions,India is poised to curb its substantial crude oil purchases from Russia,signaling a potential recalibration of its energy strategy amid mountingtariff threats.
The Trump administration has intensified pressure on New Delhi by raisingtariffs on Indian exports from an initial 25% to 50%, specificallytargeting India’s continued procurement of discounted Russian oil. Theadditional duties, enacted via successive executive orders, are intended todeter India from deepening energy ties with Russia amid the Ukraineconflict.
In recent months, India’s state-run refiners have ceased importing oil fromRussia, citing a diminishing price advantage and mounting U.S. pressure.Hindustan Petroleum, for example, reduced its intake of Russian crude tojust 13.2% of its supply mix in the second quarter, though it remains readyto resume imports if favorable discounts return.
Reliance Industries, India’s largest private refiner, now considersredirecting its sourcing to Middle Eastern countries such as Saudi Arabiaand the UAE if the U.S. tariffs persist, leveraging its flexibleinfrastructure to adapt swiftly.
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According to the State Bank of India, halting Russian oil imports couldinflate India’s fuel import bill by USD 9–12 billion in financial year2025–26, rising to USD 11.7 billion in 2026–27. While economist forecastssuggest the Russian discount has narrowed to USD 2–3 per barrel, makingdiversification feasible, continued reliance on cheaper Russian supplieshelped reduce import costs by USD 7–10 billion in 2024.
Despite these pressures, India’s leadership continues to assert its policyof strategic autonomy, insisting on safeguarding its energy security andeconomic interests. Indian officials have pointed out ongoing Russianenergy trade by Western allies and resisted external coercion.