Russia has pledged to continue supplying crude oil to India with a 5% discount, despite escalating trade tensions with the United States, which imposed a 50% tariff on Indian goods over New Delhi’s continued purchase of Russian oil. The offer, announced by Russia’s Deputy Trade Representative to India, Evgeniy Griva, comes as a strategic move to maintain robust energy ties amid U.S. efforts to curb Russia’s oil exports due to the ongoing Ukraine conflict.

Griva, speaking on the sidelines of a trade event, clarified that the discount, subject to negotiation, typically hovers around 5%, though exact terms remain a “commercial secret.” He emphasized that India’s oil imports from Russia would remain stable, stating, “Despite the political situation, approximately the same level of oil will be imported by India.” Russian Deputy Chief of Mission Roman Babushkin reinforced this commitment, expressing confidence in the enduring India-Russia partnership despite “external pressure.” He described the situation as “challenging” but affirmed trust in bilateral energy cooperation.

The U.S. tariffs, effective from August 27, 2025, following a White House executive order, aim to pressure Russia by targeting countries like India, which imports about 1.75 million barrels of Russian oil daily, accounting for roughly 35% of its total oil supply. White House trade adviser Peter Navarro accused India of acting as a “global clearinghouse” for Russian oil, converting embargoed crude into high-value exports to fund Moscow’s war efforts. U.S. spokesperson Karoline Leavitt, in a Tuesday briefing, underscored that President Donald Trump’s tariffs were designed to deter Russia’s actions in Ukraine, signaling broader sanctions on nations buying Russian oil if the conflict persists.

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India has strongly rebuffed the U.S. measures, with Prime Minister Narendra Modi asserting that New Delhi would not yield to economic coercion. The Ministry of External Affairs called the tariffs “unfair, unjustified, and unreasonable,” highlighting that India’s oil imports are driven by market factors and the need to ensure energy security for its 1.4 billion citizens. The ministry also pointed out perceived double standards, noting that the U.S. and EU continue to trade with Russia—U.S. imports included $3.5 billion in goods last year, while the EU imported 67.5 billion euros worth of Russian LNG in 2024.

The 50% tariff, among the highest imposed by the U.S., threatens India’s textile, leather, and marine export sectors, potentially slashing U.S.-bound exports by 40-50%, according to the Global Trade Research Initiative. Despite this, India’s reliance on discounted Russian oil, which saved an estimated $3.8 billion last year, remains critical. Posts on X reflect mixed sentiments, with some users praising India’s defiance as a stand for sovereignty, while others warn of economic fallout from strained U.S. ties.

As India navigates this geopolitical tightrope, upcoming talks between Modi and Russian President Vladimir Putin in New Delhi aim to strengthen trade ties, focusing on payment systems and barrier removal. Russia’s offer of discounted oil underscores its intent to preserve India as a key buyer, even as global pressures mount.

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