In addition to announcing a new 25 per cent tariff on Indian exports to the US, Trump said that India could face further penalties over its continued purchases of Russian oil
Indian companies will continue importing oil from Russia despite US President Donald Trump’s move to impose higher tariffs and penalties on New Delhi, Reuters reported on Sunday, citing two government sources.
In addition to announcing a new 25 per cent tariff on Indian exports to the US, Trump said in a Truth Social post that India could face further penalties over its continued purchases of Russian oil and weaponry.
However, the sources indicated that no immediate shift in policy is expected. “These are long-term oil contracts,” one of the sources explained. “It is not so simple to just stop buying overnight.”
Defending India’s continued oil imports from Russia, a second source noted that these purchases have played a role in preventing a global spike in oil prices, which have stayed relatively stable despite Western sanctions targeting Russia’s energy sector.
The source also pointed out that, unlike Iranian and Venezuelan crude, Russian oil is not directly sanctioned, and India is procuring it below the price cap set by the European Union.
On Saturday, sources informed news agency ANI that Indian oil refiners will maintain their imports from Russian suppliers, with procurement decisions driven by factors such as price, crude grade, logistics, and overall economic considerations.
“Indian oil refiners continue to source oil from Russian suppliers. Their supply decisions are guided by price, grade of crude, inventories, logistics, and other economic factors.”
Russian media reports have indicated that the Government of India has not issued any directive to domestic refineries to halt Russian oil imports or seek alternative suppliers.
Meanwhile, a Reuters report on Friday suggested that India, one of the world’s major energy importers, might halt purchases of discounted Russian oil.
Reacting to the development, Trump told reporters it would be “a good step” if confirmed.
“I understand that India is no longer going to be buying oil from Russia,” he said. “That’s what I heard. I don’t know if that’s right or not. That is a good step. We will see what happens.”
However, Ministry of External Affairs spokesperson Randhir Jaiswal said that India is guided by what is on offer in the international market while securing its energy needs.