India will not bow to external pressure over energy choices and will keep sourcing Russian oil, Finance Minister Nirmala Sitharaman asserted on Friday, even as the United States escalates tariffs and hints at secondary sanctions.
“Whether it is Russian oil or anything else, we will take a call based on what suits our needs in terms of rates, logistics or whatever. Where we buy our oil from, especially it being a big ticket foreign exchange related item, is a call we will take based on what suits us best. So, we will undoubtedly be buying Russian oil,” Sitharaman said.
The minister stressed that crude imports account for the largest share of India’s external bill and any shift in sourcing would be determined solely by national interest.
Her comments came days after President Donald Trump imposed a sweeping 50 per cent tariff on Indian imports, effective August 27, arguing that India’s purchases of discounted Russian crude were “funding” Moscow’s war in Ukraine. Trump, who has warned of “Phase-2” and “Phase-3” tariffs, declared, “that cost hundreds of billions of dollars to Russia,” and suggested India could face further penalties. He also described New Delhi as the largest buyer of Russian oil after China.
Also read: US has ‘lost’ India, Russia to ‘darkest China’: Donald Trump
Tariffs have long been a flashpoint in US-India ties. In his first presidential term, Trump repeatedly accused India of unfair trade practices, once describing the country as “the tariff king”. His renewed protectionist turn, however, has triggered political backlash at home, with a US appeals court recently ruling his import duties “illegal”.
Seeking to cushion the impact on Indian industries, Sitharaman pointed to structural reforms. “With a reform like GST, many of the tariff concerns would be offset,” she said. “We will come out with something to handhold those who have been hit. The package includes a variety of measures, and something is definitely coming to help them.”
India has consistently defended its oil purchases from Moscow as a matter of energy security, maintaining that its decisions are driven by price and supply stability. New Delhi has also argued that diversifying sources remains key, but access to discounted Russian crude helps temper inflationary pressures at home.
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