Anonymous sources with the Indian government told Reuters on Saturday that New Delhi would continue buying crude oil from Russia, regardless of threats from President Donald Trump to impose additional tariffs and an unspecified penalty on the country if it financially supported Moscow. Without addressing Trump’s threat directly, one of the sources said India’s agreement with Russia includes “long-term contracts,” adding, “It is not so simple to just stop buying overnight.”
What did Trump threaten?
On Wednesday, Trump announced via his social media platform, Truth Social, that India has “always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of energy.” As a result, the president wrote, India would face a 25% tariff, “plus a penalty for the above.” Trump’s threats are an attempt to get Moscow to the negotiating table so that he can bring the war in Ukraine to an end.
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By Friday, he was seemingly under the impression that his ultimatum had worked, telling reporters that he had heard India would no longer be buying Moscow’s oil. “I understand that India is no longer going to be buying oil from Russia,” Trump said. “That’s what I heard. I don’t know if that’s right or not. That is a good step. We will see what happens.”
However, according to the India-based ANI news agency, government sources have confirmed that the country will continue sourcing oil from Russia, saying its purchasing decisions “are guided by price, grade of crude, inventories, logistics and other economic factors.” India is the world’s third-largest consumer of energy.
During a media briefing on Friday, India’s Foreign Ministry spokesperson, Randhir Jaiswal said, “We look at what is available in the markets, what is on offer, and also what is the prevailing global situation or circumstances,” adding his country and Russia have a “steady and time-tested partnership.”
Is Russian crude oil sanctioned?
In its reporting, ANI notes that neither the U.S. nor the EU has ever placed sanctions on Russia’s crude oil. Both recognize that cutting off oil exports from Russia, the world’s second-largest crude oil producer, could cripple world economies.
Rather, the G7 nations and the EU imposed a price cap on Russian oil to limit its revenue stream. India purchases upwards of 35% of Russia’s overall oil supplies, according to Reuters.
“In this challenging environment, India, as the world’s third-largest energy consumer with 85% crude oil import dependence, strategically adapted its sourcing to secure affordable energy while fully adhering to international norms,” the sources told ANI.
The sources doubled down, saying India’s decision to continue importing Russian oil not only benefits the national interest but also positively impacts the stability of the global energy market.
“Had India not absorbed discounted Russian crude combined with OPEC+ production cuts of 5.86 mb/d (million barrels per day), global oil prices could have surged well beyond the March 2022 peak of US$137/bbl (per barrel), intensifying inflationary pressures worldwide,” the sources said.
The White House did not immediately return Straight Arrow News’ request for comment on Saturday’s report.
