How Much Russian Oil Is India Buying?

Escalating Tensions Between the US and India Over Russian Oil Imports

The United States has taken a significant step in its ongoing dispute with India by imposing an additional 25% tariff on Indian goods, citing concerns over New Delhi's continued imports of Russian oil. This move marks a sharp escalation in tensions between the two nations, especially after recent trade negotiations failed to produce any meaningful results.

The new import tax, which will take effect 21 days after August 7, is expected to increase duties on certain Indian exports to as high as 50%. This makes India the country facing the highest import levy from the US. Washington's decision comes as a direct response to India’s purchases of Russian crude oil, which it views as undermining international efforts to isolate Russia following its invasion of Ukraine.

India’s External Affairs Ministry has expressed disappointment over the decision, calling it “extremely unfortunate.” The ministry highlighted that many other countries are also importing Russian oil for their national economic interests. However, the US administration has not backed down, emphasizing that India is profiting from discounted Russian crude while ignoring the impact of the war in Ukraine.

In a statement posted on his Truth Social platform, the US president claimed that India is buying large quantities of Russian oil and reselling it at a profit. He added that India appears indifferent to the human toll of the conflict. This criticism led to the imposition of the new tariffs, which the US sees as necessary to address what it perceives as unfair trade practices.

India’s spokesperson, Randhir Jaiswal, strongly opposed the move, calling it “unjustified and unreasonable.” He pointed out that the US itself continues to engage in trade with Russia, as do European Union members. “It is revealing that the very nations criticising India are themselves indulging in trade with Russia,” he said. “Unlike our case, such trade is not even a vital national compulsion for them.”

Despite these warnings, Indian government sources have indicated that the country plans to continue purchasing Russian oil. This stance reflects India’s strategic reliance on Russian crude, which accounts for 35% of its total crude needs. According to official data, India is the largest buyer of seaborne crude from Russia, importing about 1.75 million barrels per day from January to June this year. In the financial year ending March 2025, India imported Russian oil worth approximately £38 billion.

The shift in global energy markets after Russia’s invasion of Ukraine in 2022 played a key role in India’s increased dependence on Russian oil. As traditional suppliers redirected their supplies to Europe, India found itself in a position where importing Russian crude became a necessity driven by market conditions. In the first year of the conflict, India imported up to 2 million barrels per day of Russian oil, accounting for roughly 2% of global supply.

Over the years, India’s imports of Russian crude have continued to grow. In 2023, the volume more than doubled year-on-year, and its exports of refined crude to the EU reached record levels. By April 2024, Indian imports of Russian crude were likely to hit 2.15 million barrels per day, the highest since May 2023.

In the fiscal year ending March 2025, India imported an average of 4.88 million barrels per day of oil, a 5% increase from the previous year. Russian oil imports rose by 7.3% to 1.76 million barrels per day, increasing its share of total imports to 36%. Meanwhile, the share of OPEC countries dropped slightly to 48.5%.

In March 2024, the US was the fourth-largest oil supplier to India, following Russia, Iraq, and Saudi Arabia. Analysts suggest that the unpredictable nature of the Trump administration poses a challenge for India in maintaining its long-standing relationship with Moscow. Richard Rossow, head of the India program at the Center for Strategic and International Studies, noted that India faces a larger challenge in managing its energy and defense purchases from Russia, given the uncertainty surrounding how the US might approach Russia in the future.