India Protests Trump's Pressure Campaign on Russian Oil Imports
The government of India confirmed Monday that it plans to resist pressure from the Trump administration to stop buying Russian oil.
India ramped up purchasing of Russian oil after the full-scale invasion of Ukraine began in 2022. As Europe shut down its own imports, large volumes of sanctioned Russian crude became available at a discount on the global market. Under the G7 "price cap" measure, Russia has been allowed to keep selling that oil to non-Western buyers. At the time of implementation in 2022-23, G7 economic planners - notably then-U.S. Treasury Secretary Janet Yellen - wanted to keep Russian oil exports flowing, keeping net global supplies stable while reducing Russian energy revenue at the margins with the price cap. "The United States at that time actively encouraged [Russian oil] imports by India for strengthening global energy markets stability," the Indian foreign ministry noted in a statement Monday.
India was a willing participant and stepped up its buying of Russian crude, allowing the Middle Eastern crude oil that it used to buy to go to Europe instead. Indian refiners stopped buying American oil in quantity, and using their newfound and heavily-discounted Russian barrels - which now account for up to 30 percent of Indian crude imports - Indian refiners provided the European market with low-cost gasoline and diesel, made partly from EU-sanctioned Russian oil.
The Trump administration entered negotiations over the future of Ukraine with a pro-Russian outlook, and initially blamed Kyiv for the war. But as rounds of peace talks have come and gone without results, President Donald Trump's opinion of Russian negotiating strategy has soured. Trump has threatened to impose "secondary tariffs" on India if Moscow does not make moves toward ending the war. As U.S. importers pay the cash amount of each tariff to U.S. Customs and Border Protection for each shipment, the policy would raise transaction costs for Indian products like textiles and pharmaceuticals, making those products less competitive.
Trump doubled down on his threats in a social media post Monday, warning that he would raise tariffs "substantially" on Indian goods if India did not relent. India has so far signaled that it will continue buying, and tanker deliveries of Russian crude continued over the weekend.
"The targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," asserted the Indian foreign ministry, noting that the EU and U.S. both still trade with Russia for other commodities.
China is the leading buyer of Russian oil, thanks to steady demand from its independent "teapot" refiners for discounted barrels. It also faces U.S. pressure to stop importing from Russia, and Beijing's leaders have made clear that China will not be swayed from its support for Moscow.
"China will always ensure its energy supply in ways that serve our national interests," China’s Foreign Ministry stated in a social media post last week. "Coercion and pressuring will not achieve anything."
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