In early August 2025, US President Donald Trump stated that he had heard reports suggesting India might be halting its purchases of Russian oil, calling such a move "a good step" if true. However, he expressed uncertainty about the accuracy of this information and indicated that the situation would unfold in the coming days.

Trump’s remarks came alongside his announcement of new US tariffs on Indian goods—specifically a 25% tariff—and unspecified penalties linked to India's continued defence and energy imports from Russia.

He criticised India for imposing high tariffs on US goods while simultaneously being one of the largest buyers of Russian oil and military equipment, despite Western sanctions related to the Russia-Ukraine conflict.

In response, the Indian government, through Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal, reiterated that India’s energy sourcing decisions are driven by market dynamics and India’s national interests, not political pressure.

The MEA clarified they were unaware of any specific developments concerning a halt in Russian oil imports by Indian companies. Indian officials emphasised that oil procurement is based on price, availability, logistical considerations, and the prevailing global situation.

Despite the external criticism and Trump's tariffs, India defended its sovereign right to conduct energy policy based on its strategic and economic imperatives. The government also reaffirmed that ties with Russia remain steady and time-tested, independent of US-Russia relations, and that defence sourcing is determined solely by national security priorities.

Industry and trade sources indicated that while Indian public sector refiners had started reducing their Russian oil imports somewhat ahead of the US penalty threats, no definitive nationwide halt had occurred as of early August.

Some state refineries paused future contracting, partly influenced by mounting international pressure and trade negotiations with the US. India remains the world's third-largest oil consumer and importer, with over 85% import dependency, and Russian oil has been a significant part of its energy mix, often purchased at discounted prices compared to global rates. Russian oil exports have not been directly sanctioned, although subject to G7/EU price caps.

Trump’s move to impose tariffs and penalties is part of broader US efforts to pressure Russia economically by targeting countries, including India and China, that continue to import Russian oil despite Western sanctions aimed at ending the war in Ukraine. Analysts have pointed out potential geopolitical and economic consequences, including retaliation from Russia, which may disrupt critical oil supply routes and risk a global supply crisis.

The ongoing US-India trade negotiations are now clouded by these tensions, with Trump acknowledging that talks are continuing but emphasising the high US trade deficit with India and India’s high tariffs on American goods.

New Delhi, meanwhile, remains confident that despite these challenges, the bilateral relationship with the US will continue to progress, focusing on substantive agendas beyond the contentious energy and trade disputes.

The government has informed Parliament that it is examining the impact of the US tariffs and penalties and is prepared to take necessary measures to safeguard India’s national interest.

While President Trump publicly welcomed reports of India potentially stopping Russian oil imports as a positive step, Indian authorities have denied any official cessation, emphasising their energy policy is independent and commercially driven.

The situation reflects complex geopolitical and economic factors, with the US leveraging trade pressure to influence India’s energy sourcing amidst ongoing global tensions linked to the Russia-Ukraine conflict.

Based On ANI Report