India has reaffirmed its commitment to sourcing oil from the most advantageous deals available, including from Russia, as tensions rise with the United States over energy imports. In an interview with Russian state-owned news agency TASS on August 25, 2023, India’s ambassador to Russia, Vinay Kumar, emphasized that the nation’s primary goal is to secure energy for its population of 1.4 billion. He characterized U.S. criticism of India’s continued purchases of Russian oil as “unfair, unreasonable and unjustified.”
Kumar stated, “The government will continue taking measures that protect the national interest of the country.” He reiterated that if commercial transactions are favorable, Indian companies will persist in obtaining supplies from any source that offers the best price. This stance comes as the U.S. intensifies its pressure on India regarding its energy sourcing strategy.
The U.S. administration, led by President Donald Trump, has implemented a significant tariff of 50% on Indian imports, which includes a 25% punitive tax specifically targeting India’s ongoing purchases of Russian oil. This tariff is set to take effect shortly, and Trump has publicly expressed dissatisfaction with India’s energy dealings, accusing the country of profiting from Russian oil sales.
In response to the tariff threats, India has countered with accusations of hypocrisy against the U.S. and the European Union, highlighting that these nations resumed Russian oil imports after traditional supply routes were disrupted by the conflict in Ukraine. India’s foreign ministry stated, “India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation.”
The ministry further criticized the targeting of India as “unjustified and unreasonable,” asserting that it would take all necessary measures to protect its national interests and economic security.
U.S. Vice President JD Vance commented on the tariffs during an appearance on NBC News’ Meet the Press, describing them as “aggressive economic leverage” aimed at pressuring Russia to negotiate a resolution to the ongoing war in Ukraine. He noted that the secondary tariffs on India are intended to restrict Russian revenue from oil sales.
India’s relationship with Russia remains strong, as both nations have pledged to enhance cooperation, particularly in energy sectors. Sergey Lavrov, Russia’s Foreign Minister, mentioned that Russian oil shipments to India are “making wide strides,” and both countries are keen on collaborating on energy production projects in Russia’s Far East and Arctic shelf.
According to the Center for Research on Energy and Clean Air, India has emerged as a significant buyer of Russian crude, purchasing approximately 38% of Russia’s crude exports between December 2, 2022, and July 2023. This positions India as the second-largest buyer after China, which accounted for 47% during the same period.
As India navigates its energy procurement strategy amidst mounting international scrutiny, its focus remains on securing affordable and reliable energy for its citizens while balancing geopolitical pressures.
