India defiant as US turns up heat on Russian oil trade

India has pushed back sharply against US threats to impose steeper tariffs over its continued imports of Russian oil, calling the criticism “unjustified and unreasonable,” and accusing the US and the European Union of hypocrisy.

In a statement issued on Monday, 4 August, the ministry of external affairs (MEA) said India’s energy trade decisions were driven by national interest and global market dynamics, not geopolitics.

“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by the global market situation,” the MEA said.

The ministry said “it is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion.”

The statement came after US President Donald Trump on Monday threatened to raise the 25% tariff already imposed on Indian exports “substantially” unless India halts its Russian oil purchases.

Trump accused New Delhi of “buying massive amounts of oil from Russia and reselling it” and claimed the Indian government was indifferent to the suffering caused by the war in Ukraine.

India rejected the suggestion that it was profiting from the conflict.

“India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The US at that time actively encouraged such imports by India for strengthening global energy markets’ stability,” the MEA noted.

New Delhi–based policy think tank Global Trade Research Initiative (GTRI) said the US position unfairly targets India while letting China off the hook.

GTRI pointed out that in 2024, China imported $62.6 billion worth of Russian oil, compared to India’s $52.7 billion. “Despite importing more oil, China has not faced any comparable criticism,” the report said.

It added that Indian refineries export only refined products and not crude, which is standard global practice.

While ratings firm Fitch Ratings warned that prolonged tariff tensions could weigh on Indian exports in select categories, including engineering goods, textiles, and automotive parts, Moody’s said the direct macroeconomic impact would be limited, given India’s robust domestic demand and energy diversification strategy.

Moody’s cautioned that heightened geopolitical risk could affect investment flows in the medium term.

Diplomatic engagement between New Delhi and Washington has also been hampered by staffing shortfalls within the US administration, Bloomberg reported on Tuesday.

Several key positions remain unfilled, including the Assistant Secretary of State for South and Central Asian Affairs and the US Ambassador to India.

The sharp downsizing of the National Security Council under Trump’s second term, from over 300 officials to around 50, has further narrowed formal channels for negotiation.

Despite the pressure, Indian officials have signaled no immediate change in policy, the report said.

A senior government official said the country would

India, meanwhile, is looking to continue sourcing Russian crude under long-term supply agreements, Reuters reported, citing two unidentified government officials.

“Energy security is non-negotiable. We take decisions based on national interest, not external pressure,” Reuters reported one of the two officials cited above as saying.