Despite US tariffs Russia says it will continue selling oil to India

20-Aug-2025

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Even as the South Asian nation faces higher US tariffs and harsh criticism from Trump administration officials for the trade Russia expects India to continue buying its oil, a senior official said.

The deputy trade representative of Russia in India, Evgeny Griva, told reporters in New Delhi on August 20, India’s imports of Russian crude are likely to stay at current levels 

The remarks come amid rising tariff tensions between the US and India. President Donald Trump has imposed a 25% tariff on Indian goods and threatened to double it to 50% on Aug. 27 — a rate that would make India’s $85 billion in annual US exports uncompetitive. 

Half of that penalty is for New Delhi’s purchases of Russian oil, which the US sees as helping fund Russian President Vladimir Putin’s war on Ukraine. India has defended its right to buy from the cheapest source, calling the tariffs “unreasonable.”

Russia sells oil to India at about a 5% discount, leaving Asia’s third-largest economy with few alternatives, Griva said. He projected bilateral trade to grow by about 10% a year.

The advantage of buying Russian oil for India is that it can trade at a lower cost, making it a key tool for keeping domestic inflation in check.

India has edged away from the US in the face of tariff threats.

After a phone call with the Russian leader this week Prime Minister Narendra Modi hailed Putin as a “friend” and New Delhi has moved to bolster relations with China. Modi is set to visit China in last week of late August to meet President Xi Jinping, his first trip to China in seven years.