Sign in Subscribe
Tariffs

India to Continue Buying Oil from Russia Amid US Trade Tensions

Strategic Insights

— 1 min read

India's Ambassador to Russia, Basant Kumar, has stated that his country will continue to purchase oil from Russia, regardless of the US decision to impose increased tariffs on Indian imports. Kumar emphasized that India's energy policy aims to secure reliable supplies for its citizens, and that cooperation with Russia has contributed to global oil market stability. He also highlighted that the US decision to increase tariffs is "unfair, unreasonable and unjustified" and that India will take measures to protect its national interest.

Key Takeaways:

  • India's Ambassador to Russia, Basant Kumar, stated that India will continue to buy oil from Russia, citing commercial transactions and market factors.
  • Kumar emphasized that India's energy policy aims to secure reliable supplies for its 1.4 billion citizens, and that cooperation with Russia has contributed to global oil market stability.
  • India's cooperation with Russia has helped bring about stability in the global oil market, according to Kumar.
  • The US decision to increase tariffs on Indian imports is "unfair, unreasonable and unjustified," as stated by Kumar.
  • India will take measures to protect its national interest, according to Kumar.
  • India and Russia have a working system of settlement in national currencies, with no payment problems for oil imports.
  • India is keen to expand its exports to Russia, particularly in electronics, automobiles, and construction materials.
  • India's exports to Russia remain below potential, with areas for improvement including textiles, fashion products, construction materials, and electronics.

Statistics:

  • 1.4 billion: The population of India that India's energy policy aims to secure reliable supplies for.
  • 50 per cent: The total tariff increase imposed by the US on Indian imports.
  • 25 per cent: The additional tariff imposed by the US on Indian imports due to continued purchase of Iranian oil.
  • 25 per cent: The additional tariff imposed to date, totalling 50 per cent.
  • 1.8 million barrels per day: India's oil imports from Russia in 2022 (Source: International Energy Agency).
  • $10 billion: India's trade with Russia in 2022 (Source: Trade Policy Report, Ministry of Commerce and Industry).

Sources:

  • ANI: Moscow [Russia], August 24, 2022
  • TASS: Interview with Basant Kumar, Indian Ambassador to Russia, August 24, 2022
  • The Economic Times World Leaders Forum 2025: Speech by S Jaishankar, External Affairs Minister, India, August 20, 2022
  • Ministry of External Affairs, Government of India: Press Release, August 20, 2022.

Read more