Saturday, March 29, 2025
India Will Not Stop Buying Oil from Russia, Sends Strong Response Amid Tariff War with Trump
Despite increasing pressure from the United States, India has decided to continue purchasing oil from its long-standing and reliable partner, Russia. According to sources cited by news agency ANI, Indian oil refineries continue to receive crude oil supplies from Russian companies. These supply decisions are driven by multiple economic factors including pricing, crude quality, inventory levels, and logistics—not political pressure.
Sources clarified that there have never been any international sanctions directly banning the purchase of Russian oil. Instead, the G7 and European Union implemented a price cap mechanism designed to restrict Russia’s revenue without disrupting global supply chains. Indian public sector oil marketing companies have adhered strictly to this cap, ensuring purchases remain below the $60 per barrel limit. The EU is now reportedly recommending lowering this price cap to $47.6 per barrel starting September.
Following the outbreak of the Russia-Ukraine war in March 2022, global oil markets faced severe volatility, with Brent crude prices spiking to $137 per barrel. During this crisis, India made a strategic decision to begin buying discounted Russian crude. This move helped stabilize the global oil market and contained inflationary pressures both domestically and internationally.
Sources noted that had India not stepped in to purchase Russian oil—while OPEC+ countries continued with their production cuts (estimated at 5.86 million barrels/day)—oil prices could have soared even higher, exacerbating the global inflation and energy crisis.
India’s approach not only protected its own energy interests but also contributed significantly to global energy supply stability. Notably, during this period, India refrained from purchasing oil from countries like Iran and Venezuela, which are under official U.S. sanctions.
This firm stance from India sends a clear message amid an escalating tariff dispute with U.S. President Donald Trump, who recently increased tariffs on Indian goods and claimed that India had stopped buying Russian oil—something now proven inaccurate.
