If global crude averages $110-115 per barrel in FY27, India's net oil imports could rise by $56-64 billion annually, worsening the current account deficit and fuelling inflation
Move comes months after President Donald Trump slapped tariffs on Indian goods in a bid to pressure Prime Minister Narendra Modi's government to abandon energy purchases from Russia
Indian refiners, wary of complicating trade talks with Washington, had pared back their purchases of Russian oil in recent weeks, which had forced Moscow to seek buyers in China
US and Israeli strikes that killed Ayatollah Ali Khamenei have deepened open conflict with Iran and rattled West Asia, disrupting sea routes via Strait of Hormuz, fuelling oil price spike
Four years after Russia's invasion of Ukraine, Western measures to restrict Russian crude oil flows are beginning to have a real impact as the Trump administration steps up pressure on India
Russia will still be the country's biggest supplier this month if flows reach the top of Kpler's range at 1.2 million barrels a day, but shipments are set to drop even further
The step is part of a wider agreement to ease trade tensions, under which India plans to buy about $500 billion worth of US goods, including energy, aircraft and technology, over the next five years
In a 'Coalition of the Willing' call, US President Donald Trump urged European leaders to stop buying Russian oil that funds the war in Ukraine and called for stronger security support
Russia said Indian goods are welcome in its market as the US raises tariffs; a top Russian diplomat defended India's oil imports and called Western sanctions unfair and one-sided
In July, negotiators from India and US had discussed the visit of the American team for sixth round of bilateral trade negotiations during the week starting Aug 25. That visit has now been called off
After US President Trump announced an extra 25% tariff on Indian goods over Russian oil imports, Congress leader Shashi Tharoor called it a 'double standard', while economists warned of a hit to India
The Global Trade Research Initiative (GTRI) stated that China-not India-is the largest purchaser of Russian oil. In 2024, China imported $62.6 billion worth, compared to India's $52.7 billion
Addressing a press conference in the national capital, MEA spokesperson Randhir Jaiswal said, 'We have seen reports on the subject and are closely following the developments'
