logo
India buying Russian oil an ‘irritant' for Trump administration! How much crude does India get from Russia & will it stop after US penalty warning? Top 10 points

India buying Russian oil an ‘irritant' for Trump administration! How much crude does India get from Russia & will it stop after US penalty warning? Top 10 points

Time of Indiaa day ago
Trump administration officials have said that India buying oil from Russia is an 'irritant' for the US. (AI image)
India is faced with the prospect of an additional penalty from the Donald Trump administration for its procurement of oil and defence equipment from Russia. While announcing a 25% tariff rate for India this week, Trump also warned of a penalty for India's trade ties with Russia.
He specifically criticised these actions "at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE."
"India will therefore be paying a tariff of 25%, plus a penalty for the above (Russian purchases), starting on August First," he posted on Truth Social.
India's dependency on Russian oil has gone up significantly from a mere 0.2% prior to the Russia-Ukraine conflict to currently representing 35-40% of total crude imports! This shift has attracted renewed attention following US President Donald Trump's announcement of additional penalties atop a 25% tariff on all US-bound goods.
Also Read |
Donald Trump's 25% tariff: India expects minimal impact; indicates agriculture, dairy, GM food no-go areas in trade deal talks
Trump administration officials have said that India buying oil from Russia is an 'irritant' for the US. How much crude oil does India get from Russia? What will happen if the US imposes a penalty and has India stopped buying Russian oil? We take a look:
How Much Russian Oil Does India Buy?
Traditionally, India sourced the majority of its oil requirements from Middle Eastern nations, particularly Iraq and Saudi Arabia. This procurement pattern shifted significantly following Russia-Ukraine in February 2022.
As the world's third-largest crude importer, following China and the US, India began purchasing Russian oil at discounted rates after Western nations boycotted Russian supplies as a punitive measure against Moscow's military actions in Ukraine.
Russia has evolved from holding a minimal 0.2% share in India's import portfolio before the Ukraine conflict to becoming the country's primary supplier, surpassing both Iraq and Saudi Arabia, and reaching a peak share of 40%.
Currently, Russian oil comprises 36% of India's total crude oil imports, which is subsequently processed into various fuel products including petrol and diesel.
India's crude oil imports from Russia stood at 68,000 barrels per day in January 2022, as reported by Kpler, a global real-time data and analytics provider. During the same period, India received 1.23 million bpd from Iraq and 883,000 bpd from Saudi Arabia.
Russia emerged as India's primary oil supplier in June 2022, surpassing Iraq. Russian supplies reached 1.12 million bpd, whilst Iraq provided 993,000 bpd and Saudi Arabia delivered 695,000 bpd, according to a PTI report quoting Kpler data.
Russian oil supplies reached their highest point at 2.15 million bpd in May 2023, with fluctuations based on available price discounts.
The supply consistently remained above 1.4 million bpd, exceeding India's pre-Ukraine conflict imports from its then-leading supplier, Iraq.
Current Russian oil imports average 1.78 million bpd, significantly higher than Iraq's 900,000 bpd. According to Kpler's data, Saudi Arabia's contribution stands at 702,000 bpd.
Following western sanctions on Russian energy after the Ukraine war, Russia offered substantial price reductions to willing crude oil buyers. The difference between Russia's primary Urals crude and the globally recognised Brent benchmark initially reached $40 per barrel, but has since narrowed to under $3.
In December 2022, G7 nations announced a $60 per barrel ceiling on Russian crude prices. This arrangement allowed European firms to continue shipping and insuring Russian oil deliveries to third countries, provided the sales price remained below the ceiling - aiming to maintain global oil supply whilst reducing Russian revenue.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Luxurious Apartments @ ₹1.65 Cr Near HITEC City
Honer Signatis
Book Now
Undo
The European Union has recently adjusted the price cap to $47.6, incorporating an automatic review system. This revision aims to maintain the cap at 15% below average market prices.
US Penalty Risk For India
The recent EU ban on Russian-origin refined product imports, coupled with Trump's warning, creates significant challenges for Indian refiners.
According to analysts, if India is forced to shift away from Russian crude due to US threats of additional tariffs or penalties on Indian exports, the nation's yearly oil import expenses could increase by $9-11 billion.
According to a PTI report, Kpler's Lead Research Analyst (Refining & Modeling), Sumit Ritolia, describes this situation as "a squeeze from both ends".
Also Read |
Donald Trump to help Pakistan build 'massive oil reserves'! How much known crude oil does it have & how does that compare to India? Top points to know
The EU sanctions, which take effect from January 2026, could require Indian refiners to modify their crude intake patterns, whilst the US tariff threat suggests possible secondary sanctions affecting shipping, insurance, and financing aspects of India's Russian oil trade.
These combined measures restrict India's crude procurement options, increase compliance risks, and create substantial cost uncertainties.
India's crude oil imports in the previous fiscal year exceeded $137 billion, which is processed to produce fuels including petrol and diesel.
The situation is particularly critical for major refiners such as Reliance Industries Ltd and Nayara Energy, who together process more than 50 per cent in 2025 of India's Russian crude imports, ranging between 1.7-2.0 million barrels per day (bpd).
Will India Stop Buying Crude From Russia?
Interestingly, India has substantially boosted its crude oil purchases from the United States following President Donald Trump's re-election to the White House, according to an ANI report. Imports have risen more than 50% when compared with last year.
'From January to June 25, India increased its imports of US average crude supplies by 51 per cent compared to the same period last year. (From .271 mb/d in January to June 2025 as compared to 0.18 mb/d in the same period last year),' sources told ANI.
US President Donald Trump on Friday commented that India might stop purchasing Russian oil, describing it as "a good step" if accurate. However, India has consistently maintained its right to implement energy policies aligned with national interests.
Also Read |
Donald Trump's 25% tariff, 'dead economy' jibe: India sends clear message to the US in 5 points - what Piyush Goyal said
When questioned about potential penalties for India and discussions with Prime Minister Narendra Modi, Trump stated, "I understand that India is no longer going to be buying oil from Russia.
That's what I heard, I don't know if that's right or not. That is a good step. We will see what happens..."
India continues to maintain its independent stance on Russian oil purchases, with no directives issued to refiners to halt imports.. Both government-owned and private refiners retain autonomy in their procurement decisions, which are based on commercial considerations, sources told Bloomberg.
Sources told ANI that Russia holds a significant position in global oil markets, producing approximately 9.5 mb/d, which represents nearly 10% of worldwide demand.
As the second-largest crude producer and exporter globally, Russia exports about 4.5 mb/d of crude and 2.3 mb/d of refined products.
Sources speaking to ANI specifically rebutted speculation about India discontinuing Russian oil purchases and Trump's subsequent remarks supporting these reports.
How Much Defence Equipment Does India Buy From Russia?
Trump's post on Truth Social not only targeted India's oil purchases from Russia, but also its procurement of arms.
The United States was the world's largest arms exporter with a share of 43% in global arm exports between 2020-2024. Saudi Arabia, Ukraine and Japan are the main recipients of these exports.
Russia was the third largest arms exporter in the same period, with a 7.8% share in global arms exports. This has dropped by 64% from 21% in 2015-2019. The main recipients of Russia's arms were India, China and Kazakhstan.
India ranked as the second-largest arms importer globally during 2020-24, accounting for 8.3% of worldwide arms imports.
It saw a decline of 9.3% in arms imports when comparing the periods 2015-19 and 2020-24.
Also Read |
Russia oil squeeze: Trump's 100% tariff threat - should India panic?
This can be attributed primarily to India's enhanced capabilities in indigenous weapon design and manufacturing, which has reduced its dependence on foreign arms procurement, according to the latest SIPRI report for this year.
Russia's contribution to India's imports has declined to 36%, a substantial reduction from 55 % during 2015-19 and 72% in 2010-14.
India has begun diversifying its defence procurement strategy by strengthening partnerships with Western nations, particularly focusing on France, Israel and the USA, SIPRI has noted in its report.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

‘Being woke is for losers': Trump supports ‘republican' Sydney Sweeney, bashes Taylor Swift
‘Being woke is for losers': Trump supports ‘republican' Sydney Sweeney, bashes Taylor Swift

Hindustan Times

time25 minutes ago

  • Hindustan Times

‘Being woke is for losers': Trump supports ‘republican' Sydney Sweeney, bashes Taylor Swift

United States President Donald Trump took the opportunity to support American actor Sydney Sweeney, a registered Republican, to bash 'woke' artists such as Taylor Swift. US President Donald Trump bashed brands such as Jaguar and Bud Lite for doing 'woke' advertisements.(File/AP) Calling Sweeney's controversial campaign for American Eagle the 'hottest' ad out there, Trump said that the brand's jeans are 'flying off the shelves.' 'Sydney Sweeney, a registered Republican, has the 'HOTTEST' ad out there. It's for American Eagle, and the jeans are 'flying off the shelves.' Go get 'em Sydney!' Trump wrote in a heavily-worded post on his social media platform Truth Social. He then went to bash brands such as Jaguar and Bud Lite for doing 'woke' advertisements. He said that their 'woke' advertisements essentially destroyed the brands and led to a loss of billions of dollars. 'On the other side of the ledger, Jaguar did a stupid, and seriously WOKE advertisement, THAT IS A TOTAL DISASTER! The CEO just resigned in disgrace, and the company is in absolute turmoil. Who wants to buy a Jaguar after looking at that disgraceful ad," he said. 'Shouldn't they have learned a lesson from Bud Lite, which went Woke and essentially destroyed, in a short campaign, the Company. The market cap destruction has been unprecedented, with BILLIONS OF DOLLARS SO FOOLISHLY LOST,' he added.

Russian oil import cuts could hit Indian OMCs GRM by $1–1.5/bbl, says report
Russian oil import cuts could hit Indian OMCs GRM by $1–1.5/bbl, says report

Mint

time25 minutes ago

  • Mint

Russian oil import cuts could hit Indian OMCs GRM by $1–1.5/bbl, says report

US President Donald Trump last week targeted Indian imports by announcing a 25% tariff on goods imported from India, effective August 7, 2025, along with an unspecified penalty for the country's ties with Russia. He has been threatening to impose hefty tariffs on countries that continue importing Russian crude, claiming that these nations are directly financing Russia's continued attacks on Ukraine On July 15, 2025, Trump gave Russia 50 days to end the Ukraine war and agree to a peace deal; otherwise, he threatened to impose a 100% tariff on buyers of Russian oil. On July 29, he shortened this timeline to 10–12 days (down from 50 days). The US Treasury Secretary also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it continued its purchases, with threats further extended to India to stop buying the Russian crude. India is among the major buyers of Russian crude, with imports witnessing a significant surge since the onset of the Russia-Ukraine conflict in 2022 and the subsequent drop in Russian crude prices. The share of Russian crude in India's total crude petroleum imports rose from just 1.5% during FY2018–FY2022 to 19.3% in FY2023 and further to 33–35% in FY2024–FY2025. Discounted Russian oil has also helped stabilize prices during periods when global crude prices spiked sharply, reaching as high as $135 per barrel. Analysts at JM Financial believe this move is likely part of a broader US negotiation strategy aimed at pressuring Russia into agreeing to a peace deal with Ukraine. A significant reduction in Russian crude imports could otherwise trigger a sharp rise in crude prices, counteracting Trump's efforts to push the US Federal Reserve toward cutting interest rates, they added. The US threat of secondary tariffs and penalties has prompted Indian refiners to seek government guidance on Russian crude purchases. Reports suggest state refiners halted Russian oil buys last week due to narrowing discounts and sanction risks, with tankers idling off India's west coast. However, India's MEA stated energy imports are driven by market dynamics, not US pressure. While the US president claimed India may stop buying Russian oil, government sources clarified that refiners continue sourcing based on price, crude grade, and economic factors. According to analysts at JM Financial, if India stops importing Russian crude, it would significantly impact OMCs and CPCL/MRPL, while having only a slight negative effect on Reliance Industries. The brokerage noted that this would end the USD 1–1.5/bbl GRM benefit that Indian refiners have enjoyed since FY23, driven by Russian crude discounts of USD 3–4/bbl, which account for 30–40% of India's crude requirements. It further stated that every USD 1/bbl hit to GRM could negatively impact FY26 EBITDA by 8–10% for OMCs, 20–25% for MRPL/CPCL, and approximately 2% for RIL's consolidated EBITDA. This impact could be partially offset by a potential rise in diesel cracks due to supply-side concerns arising from possible US and EU sanctions. The brokerage also noted that crude oil prices could rise sharply if India halts Russian crude imports, assuming the shortfall is not offset by increased purchases from China or other countries. China already buys a substantial 2–2.5 mmbpd of Russian crude compared to its total oil demand of around 16.5 mmbpd. However, a sustained upside in crude prices is likely to be capped due to the current global oil oversupply of 1.5–2 mmbpd, aided by the easing of OPEC+'s 2.2 mmbpd voluntary output cut and a 1.5 mmbpd growth in non-OPEC+ output in CY25. Global oil supply is expected to grow 2.1 mmbpd in CY25 versus demand growth of approximately 0.7 mmbpd. Additionally, Saudi Arabia has spare capacity of around 2 mmbpd, and elevated crude prices could hinder a key priority of the US President, pushing the US Federal Reserve to cut interest rates, the brokerage noted. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Trump Threatens To "Substantially" Raise Tariffs On India Over Russian Oil
Trump Threatens To "Substantially" Raise Tariffs On India Over Russian Oil

NDTV

time25 minutes ago

  • NDTV

Trump Threatens To "Substantially" Raise Tariffs On India Over Russian Oil

US President Donald Trump has threatened India yet again over its purchase of Russian oil. "India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine," Trump said in a post on Truth Social. "Because of this, I will be substantially raising the Tariff paid by India to the USA," he said without specifying what tariff level he had in mind. His post comes days after his announcement that 25 percent tariff would be imposed on goods imported from India, adding that the country would also face an unspecified penalty, but gave no details. Government sources, however, told NDTV that the tariff would have a "negligible" impact on the Indian economy. The GDP loss is not likely to exceed 0.2 per cent, sources said. Over the weekend, sources in the government told NDTV that Indian oil firms will not be halting Russian imports as "India's energy purchases are driven by national interests and market forces". Trump's threat follows his increasingly souring relationship with Russia for failing to agree to a ceasefire in Ukraine. He even threatened new economic sanctions if progress was not made. India, the world's third-largest crude importer after China and the US, historically bought most of its oil from the Middle East, but this changed after Russia began selling its oil at discounted rates after the West shunned it as punishment for its full-scale invasion of Ukraine in February 2022. The same year, External Affairs Minister S Jaishankar defended India's decision and said, "India's total purchase of oil from Russia in a month is probably less than what Europe does in an afternoon". He was addressing a press conference in Washington. India purchases up to 2 million barrels per day of oil, accounting for 2 per cent of global supply. Other top buyers are China and Turkey. Last week, Trump declared that the US has a massive trade deficit with India, accusing it of having the "most strenuous and obnoxious non-monetary Trade Barriers of any country". "While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any country," he said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store