India to Maintain Russian Oil Imports: Govt Sources

Speedy Summary

• India plans to continue purchasing Russian oil despite potential U.S.penalties, as per two unnamed senior Indian government officials cited by The New York Times.
• U.S. President Donald Trump has proposed tariffs on countries importing Russian oil, including India, unless peace is achieved in Ukraine.
• Indian refiners are decreasing Russian crude purchases due to shrinking discounts and steady global demand; no new contracts for Russian oil were signed last week.
• Russia remains India’s top oil supplier (35% of total supply) during January-June 2025, with imports slightly rising year-on-year.
• India’s Foreign Ministry emphasized long-term partnerships and independent foreign policy decisions, resisting external pressures like those from the U.S.
• EU sanctions on Nayara Energy-a key buyer of Russian crude and majority-owned by Russian companies-have led to executive changes and shipment delays.

Indian Opinion Analysis

India’s decision to prioritize its energy security over geopolitical pressures underscores its pragmatic foreign policy approach. The criticality of stable energy supplies for an economy dependent on imports (over 85%) necessitates a diversified procurement strategy. While shrinking discounts are influencing market dynamics more directly than political threats, India’s assertion of autonomy reflects the reality that such decisions are rooted in national interests rather than external coercion.

However, sustaining this balance may grow elaborate due to heightened trade tensions with the U.S., particularly if proposed tariffs materialize. Concurrently, reliance on Russia amidst EU sanctions creates financial risks which domestic industries will need to navigate carefully. This situation highlights India’s broader challenge: balancing relationships between competing global powers while securing essential resources.

Read More: The Hindu