India Defies US Tariffs, Why Russian Oil Remains Untouchable?
India rejects US tariffs, defends buying Russian oil to protect energy security.
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri firmly stated on Friday that no international sanctions prohibit the purchase of Russian crude oil, cautioning that any disruption to Russia’s supply—nearly 10 million barrels per day—would trigger severe global economic repercussions. Speaking to reporters amid tense US-India trade negotiations, Puri’s remarks underscore India’s delicate balancing act as it navigates punitive US tariffs while safeguarding its energy security.
The minister’s comments follow the US imposing a 25 percent tariff on Indian exports, compounded by an additional 25 percent penalty, targeting India’s continued procurement of Russian crude oil and arms. These tariffs, totaling 50 percent, affect billions in Indian goods, from textiles to pharmaceuticals, and have intensified bilateral trade friction. Despite this, Puri emphasized India’s compliance with international sanctions, citing its adherence to restrictions on Iranian and Venezuelan oil as evidence of its responsible global stance.
“Energy is something you cannot do without,” Puri asserted, highlighting Russia’s role as the world’s second-largest crude supplier. “If you remove the second-largest producer, you will have to cut consumption. The consequences are pretty serious.” He noted that the absence of outright sanctions on Russian oil—unlike those on Iran and Venezuela—reflects a global consensus to maintain supply stability, with a G7/EU price cap mechanism allowing purchases while limiting Moscow’s profits.
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Puri revealed that India, the world’s third-largest oil importer, has capitalized on Russian crude, which accounts for a significant portion of its 5 million barrel-a-day import needs. While discounts on Russian oil have narrowed in 2025, Puri encourages Indian refiners, including state-run giants like Indian Oil Corporation, to negotiate lower prices under the price cap framework. He stressed that these companies operate autonomously, guided by professional management and boards, ensuring commercially sound decisions.
The minister also pointed out that India is not alone in relying on Russian oil. Countries like Turkey, Japan, and even some European Union nations continue to purchase significant volumes, underscoring the global dependence on Russia’s supply. For instance, Turkey has emerged as a major buyer, while Japan sources a notable share of its liquefied natural gas (LNG) from Russia, and the EU maintains limited crude and gas imports.
Looking ahead, Puri advocated for a “broad equilibrium” in global oil supply and demand, predicting Brent crude prices to stabilize between $65-68 per barrel. He subtly noted that the US, a leading oil producer with a focus on shale gas, has a vested interest in preventing a sharp decline in fossil fuel prices, given its domestic political sensitivity to inflation and reliance on shale production.
As US-India trade talks falter, Puri’s defense of Russian oil purchases highlights India’s pragmatic approach to energy security. With global markets still tethered to Russian crude, India’s stance reflects a broader reality: disrupting this supply could destabilize economies worldwide, a risk no nation, including the US, appears willing to take.
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