Russia stated that India remains free to diversify its oil suppliers following comments by US President Donald Trump suggesting American pressure could reduce Indian purchases of Russian crude, highlighting New Delhi's delicate diplomatic balancing act between Washington and Moscow.
Kremlin spokesman Dmitry Peskov told reporters that "India has always purchased these products from other countries. Therefore, we see nothing new here," according to Russian state media. The comments came after Trump indicated during trade negotiations that the United States expected India to reduce Russian oil imports as part of broader bilateral economic arrangements.
India's oil relationship with Russia transformed dramatically after Western sanctions following the February 2022 invasion of Ukraine. Indian refiners increased Russian crude purchases from under 2% of total oil imports before the war to approximately 35-40% by late 2025, taking advantage of steep discounts as Western buyers exited the market.
The Russian crude comes primarily through complex shipping arrangements involving third-party vessels and insurance, creating a shadow fleet that operates outside Western financial systems. Indian refiners process the discounted crude and export refined products to global markets including Europe, effectively allowing Western economies to indirectly benefit from Russian oil while maintaining sanctions.
In India, as across the subcontinent, scale and diversity make simple narratives impossible—and fascinating. The country's energy security depends on imported oil for over 80% of consumption, making price sensitivity paramount for an economy where fuel costs directly impact inflation, transportation, and agriculture.
Peskov's statement emphasized India's sovereignty in energy procurement decisions while acknowledging market realities. "India is a sovereign state, it makes its own decisions," he said, but added that Russian crude offers advantages that India considers in commercial terms. The Kremlin's public affirmation of India's purchasing freedom serves Moscow's interest in maintaining one of its largest remaining export markets.
The diplomatic dance around oil purchases reflects India's strategic autonomy doctrine—New Delhi's long-standing policy of maintaining relationships with multiple powers rather than exclusive alignment with any single bloc. India has refused to condemn Russia's invasion of Ukraine in United Nations votes, abstaining on resolutions that Western nations supported, while simultaneously deepening defense and economic ties with the United States through Quad cooperation and bilateral agreements.
US officials have privately expressed frustration with India's Russian oil purchases, viewing them as undermining Western sanctions pressure on Vladimir Putin's government. Yet Washington has avoided public ultimatums, recognizing that India's geopolitical importance in countering China outweighs energy trade concerns. The recent India-US trade agreement notably did not include explicit restrictions on Russian oil imports.
Indian officials have consistently defended the purchases in economic terms. "Our first obligation is to our citizens—to ensure they have energy at affordable prices," External Affairs Minister S. Jaishankar stated at a previous international forum. He noted that European countries continued purchasing Russian gas even while criticizing India's oil imports, highlighting what New Delhi views as Western double standards.
The oil trade benefits both Russia and India substantially. Russia maintains crucial export revenue despite Western sanctions, with India becoming its second-largest crude customer after China. India saves billions of dollars annually through discounted purchases—estimates suggest $4-6 billion in savings during 2024 alone—while its refining sector gains feedstock price advantages over competitors.
Yet the arrangement carries risks. India's growing dependence on Russian crude creates vulnerability if geopolitical circumstances force supply disruptions. The shadow fleet and complex financial arrangements add counterparty risk. Western sanctions could theoretically expand to secondary enforcement targeting Indian entities, though such escalation would severely damage US-India relations.
Alternatively, if Russia-Ukraine tensions ease and Russian oil returns to global markets without steep discounts, India's price advantage disappears. Indian refiners have limited long-term contracts with Russia, making the current arrangement opportunistic rather than structural.
The broader context includes India's infrastructure for receiving and processing oil. Indian refineries were originally configured for Middle Eastern crude grades, requiring adjustments to handle Russian Urals and ESPO crude. The technical adaptations Indian refiners made to maximize Russian crude processing demonstrate the scale of the trade shift since 2022.
India simultaneously pursues energy transition and renewable capacity expansion, aiming for 500 GW of renewable energy by 2030. Yet oil demand continues growing as economic development increases vehicle ownership, aviation travel, and petrochemical consumption. Energy analysts project India's oil import dependence will remain above 80% through at least 2030 regardless of renewable additions.
The Trump administration's willingness to raise Indian oil purchases in bilateral negotiations marks a shift from the previous US approach of tacit acceptance. Whether Washington pushes harder on this issue in future trade or defense discussions remains uncertain, though the recent trade agreement's silence suggests American officials chose to preserve broader relationship stability rather than force the oil issue to a breaking point.
