India rejects US and EU criticism over Russian Oil Imports

India rejects US and EU criticism over Russian Oil Imports

Why in News India rejects US and EU criticism over Russian Oil Imports? 

Recently, India firmly rejected criticism from the United States and the European Union over its continued oil imports from Russia. The government emphasized that its energy decisions are guided by national interest and India will prioritize affordable energy to meet the needs of its growing population and economy.

Recent US and EU Remarks and Actions on India’s Russian Oil Imports

• US Tariff: The United States under former President Trump issued a 25 percent tariff on Indian exports in early August 2025. This step was taken to protest India’s continued purchases of Russian oil and military goods. A senior official claimed that India’s oil imports now rival China’s and alleged that these purchases are helping Russia sustain its war efforts. The US also proposed secondary sanctions bill in mid‑2025 that could impose 500 percent tariffs on countries trading key exports with Russia. Tariff penalties targeted Indian exports unless policy shifts. 

• EU Sanctions: In July 2025, the European Union unveiled its 18th sanctions package to tighten restrictions on Russian energy revenues. This package includes a ban on importing refined fuels made from Russian crude—even if processed in third countries like India. It also targets India’s Nayara Energy refinery, backed by Rosneft. The EU warned countries selling diesel or gasoline made from Russian oil to Europe would be seen as sanctioning “circumvention.”

Also Read: America Imposes 25% Tariff on India

India’s Firm Stand on recent US and EU Actions

• India insists that its energy policy remains based on sovereign choices. The Ministry of External Affairs clarifies that decisions follow national interest and market realities. 
• Officials explain that energy purchases depend on what global suppliers offer and India’s domestic needs. 
• India emphasizes that its import of Russian crude ensures fuel stays affordable for households and businesses. 
• India’s Ministry of External Affairs called US and EU criticism unjustified and unreasonable.
• Officials note that discount pricing from Russia helps maintain stable energy costs. India argues that this is about serving its growing population while containing inflation.
• India points out that in 2024, the European Union recorded total trade with Russia surpassing €67 billion, reflecting ongoing economic ties. The US also continues to import energy, fertilizers, chemicals and uranium. India calls it unjust to single out its purchases while ignoring similar Western practices.

Also Read: EU Sanction on Indian Refinery

Trade Volumes of US, EU, and India with Russia

• EU Trade: the EU brought in goods worth €35.9 billion from Russia and sent exports totaling €31.5 billion. Mineral fuels formed the largest part of these imports, contributing €22.3 billion and accounting for more than 62 percent of the total. The EU sent mainly chemicals worth €13.7 billion, along with food and machinery. Russia sold mostly fuel, iron, steel and fertilizers to the EU in 2024.

• US Trade: The US maintained low trade with Russia. The US exported US$526 million to Russia in 2024. Imports from Russia stood at US$3.0 billion in the same year. The total US goods trade with Russia was US$526.1 million in 2024. US imports dropped 34 percent in 2024 versus 2023. US exports dropped 12 percent in that same period.

• India Trade: India ramped up trade with Russia after 2022 sanctions. Trade rose six‑fold from before 2022. India total trade touched US$68.7 billion in fiscal 2025. India imported US$67.15 billion worth of goods from Russia in 2024. Raw oil dominated this trade. Crude oil made up about 35 percent of India’s total oil imports in the first half of 2025. 

Also Read: India’s US Crude Oil Imports Jump 50%

Why does India Continue Buying Russian Oil?

• Discounted Prices: Russia offered deep discounts on its crude oil after Western sanctions in 2022. India used that opportunity to cut its oil import bill. In FY 2023‑24 India saved nearly $8 billion due to cheaper Russian oil. Those savings helped reduce inflation.

• Diversified Supply Sources: India reduced reliance on OPEC nations. In fiscal 2024‑25 its share of oil imports from the Middle East hit a record low. Meanwhile Russian crude made up about 36‑40 percent of total imports. This shift boosted supply reliability and lowered dependency on any single region.

• Export Benefits: Indian refiners like Reliance and Nayara Energy became major buyers of Urals grade oil. They processed Russian crude for domestic fuel and for exporting refined products abroad. India handled up to 80 percent of Russia’s seaborne Urals exports in 2025. India turned the oil into exportable goods for global markets.

• Long-Term Bilateral Relationship: India and Russia share a longstanding strategic partnership. That includes decades of cooperation in energy, defence and nuclear sectors. The oil trade fits into a broader geo‑economic framework that India values. This stable link adds trust and predictability.

Also Read: Trump Announces New Tariffs on 69 Countries

The Road Ahead for India’s Energy Strategy

• India plans to source crude from 40 countries in 2025, up from 27 in 2022. This supply diversification helps reduce dependence on any single region. It keeps its energy chain resilient if sanctions disrupt Russian deliveries.
• Authorities aim to reach 500 GW of renewable energy capacity by 2030. They boost investment in solar, wind, biofuels, and green hydrogen. This shift will reduce reliance on imported fossil fuels over time. 
• India supports BRICS trade routes and seeks cooperation under G20 and Quad platforms. This multipolar strategy protects its energy interests without isolating either side.
• The oil import bill for Q1 FY 2026 dropped 18.6% to US $30.6 billion due to Russian price discounts. Those savings helped cap inflation and limit external deficits. As long as discounts persist, India can manage costs even amid shifting global market dynamics.

Also Read: US Sanctions on Iranian Oil Network