India accounts for one-fifth of Russia's oil revenue since Ukraine war

United States has escalated its criticism of India's continued imports, with President Donald Trump imposing tariffs in a bid to dissuade Russia from pursuing its military campaign in Ukraine

India has purchased Russian oil worth ₹13,200 crore since the onset of the Ukraine war in early 2022, representing one-fifth of Moscow’s ₹64,000 crore oil export revenues during this period, The Economic Times reported.

 

According to the Finland-based Centre for Research on Energy and Clean Air (Crea), India’s imports of Russian oil remain below China’s ₹19,300 crore, but are higher than those of the European Union (EU) and Turkiye, which stood at ₹10,500 crore and ₹7,100 crore, respectively.

 

Overall, Russia earned ₹93,100 crore from exports of oil, gas, and coal after the conflict began. China has been Moscow’s largest fossil fuel customer, with imports worth ₹26,800 crore, ahead of the EU at ₹21,300 crore, India at ₹14,800 crore, and Turkiye at ₹11,100 crore.

 

 

US criticism of India

 

The United States (US) has intensified its criticism of India’s continued imports. White House Press Secretary Karoline Leavitt stated that US President Donald Trump imposed tariffs on India to deter Russia from continuing its military campaign in Ukraine. She stated that the sanctions were intended to exert secondary pressure on Moscow.

 

White House trade adviser Peter Navarro had said that India acted as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while providing Moscow with the dollars it needed.

 

EU contributes a quarter of Russia’s fossil fuel revenues

 

Western governments have frequently accused India and China of financing Moscow’s war effort through such purchases. However, Crea’s data suggests that the EU itself accounted for nearly a quarter of Russia’s fossil fuel revenues since February 2022.

 

Crea compiles its estimates using a range of data on Russian export volumes and prices, while applying its assumptions. The research group has also pushed for stricter sanctions and tighter enforcement of the oil price cap to limit Moscow’s income.

 

Despite the rhetoric, Russian oil has not been subject to a blanket ban, keeping it available on global markets and enabling India, China, and others to buy at discounted rates.

 

Trump raises tariffs on Indian exports to 50%

 

On August 6, Trump announced an additional 25 per cent duty on Indian exports due to New Delhi’s ongoing oil trade with Russia. The tariff was later raised to 50 per cent, making it the steepest imposed on any country other than Brazil.

 

India denounced the decision as “unfair, unjustified and unreasonable.” Prime Minister Narendra Modi emphasised that New Delhi would not yield to economic coercion. Executives at Indian refineries have said that they would continue purchasing Russian crude despite the risk of penalties.

 

Russia offers India discounted oil

 

Amid sanctions and rising pressure from Washington, Russia has pledged to maintain oil supplies to India. Deputy trade representative of Russia to India, Evgeniy Griva, stated that, “There will be a 5 per cent discount, subject to negotiation, on Russian crude oil purchases to India.”