India to Continue Russian Oil Imports Despite Trump’s Penalty Threats

India will maintain its Russian oil purchases despite U.S. President Donald Trump’s threats of penalties, two Indian government sources told Reuters. Trump, who recently imposed a 25% tariff on Indian exports and hinted at further penalties for Russian energy and arms purchases, said he believed India had halted Russian oil imports. However, Indian officials confirmed no immediate policy change.

Officials cited long-term oil contracts and discounted Russian crude prices as key reasons for continuing imports. They also noted that India’s purchases help stabilize global oil prices, which remain subdued despite Western restrictions on Russia’s energy sector. Russian crude is not directly sanctioned and is being bought below the EU price cap.

Foreign ministry spokesperson Randhir Jaiswal reaffirmed India’s “steady and time-tested partnership” with Russia, emphasizing that energy sourcing decisions depend on market availability and global circumstances.

Russia remains India’s largest oil supplier, accounting for about 35% of its imports. From January to June 2025, India imported roughly 1.75 million barrels per day of Russian oil, slightly higher than last year, according to industry data.

While government policy has not changed, sources revealed Indian state refiners recently paused Russian oil purchases as discounts narrowed to their lowest since 2022. Companies such as Indian Oil Corp, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery have not sought Russian crude in recent weeks.

Privately owned Nayara Energy, majority-owned by Rosneft, faces EU sanctions that have stalled cargo deliveries and prompted its CEO’s resignation. Trump has also threatened 100% tariffs on U.S. imports from countries buying Russian oil unless Moscow secures a peace deal with Ukraine, signaling continued pressure on India’s energy strategy.

This stance highlights India’s balancing act between securing energy supplies and navigating geopolitical tensions.