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India Pushes Back Against US Tariff Threats Over Russian Oil Imports

Strategic Insights

— 1 min read

India has defended its energy strategy, calling the targeting of India over its continued oil imports from Russia "unjustified and unreasonable." The ministry of external affairs (MEA) stated that India's crude oil purchases from Russia are a necessity compelled by global market conditions and not a political endorsement of Moscow. India will take all necessary measures to safeguard its national interests and economic security, the MEA added.

India has emphasized its commitment to ongoing trade negotiations with the US, with the next round of talks scheduled for August 25-29 in New Delhi. The US has threatened to "substantially" raise tariffs on Indian goods over the country's continued oil imports from Russia. However, India has pointed out that the US and the European Union have continued trade with Russia, including in energy and critical commodities, despite publicly opposing the Ukraine conflict.

Key Takeaways:

  • India's crude oil purchases from Russia are a necessity compelled by global market conditions, not a political endorsement of Moscow.
  • India's Russian oil imports rose from 0.2% of total imports pre-war to over 35% in recent months, making Russia India's top supplier.
  • India has pointed out "double standards" in the response to Russian oil imports, noting that the EU's trade with Russia in 2024 was significantly higher than India's.
  • The US has continued to import uranium, palladium, and fertilizers from Russia.
  • India has emphasized its commitment to ongoing trade negotiations with the US, with the next round of talks scheduled for August 25-29 in New Delhi.
  • India enjoys a goods and services trade surplus of around $44.4 billion with the US.

Statistics:

  • India's Russian oil imports rose from 0.2% of total imports pre-war to over 35% in recent months.
  • India's bilateral trade with the US hit $186 billion in 2024-25.
  • India has a goods and services trade surplus of around $44.4 billion with the US.
  • EU imports of Russian LNG hit a record 16.5 million tonnes in 2024.
  • US has imposed a 25% duty on Indian goods following the Executive Order on August 1, 2024.

Sources:

  • India Ministry of External Affairs (MEA)
  • Times of India news article, dated [no date provided] but quoted in the article as 2024 (referring to the current year, implied in the context)
  • US Presidential Executive Order, dated August 1, 2024

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