Despite US pressure, India boosts Russian crude imports amid US tariffs & deep discounts
India plans to significantly increase Russian crude oil imports despite US tariffs and pressure, capitalizing on Moscow's attractive discounts. Indian refiners are ramping up purchases while engaging in ongoing trade negotiations with the US, also exploring additional American energy options. This strategic move underscores India's focus on securing affordable energy supplies amidst evolving geopolitical landscapes.
New Delhi: India is expected to increase the import of Russian crude oil in the coming months. Notably, New Delhi is possibly taking this step at a time when the US has imposed an additional tariff of 25 percent on Russian oil trade. Reports suggest that Indian refiners are planning to increase Russian oil imports in the coming months, while discussions with the US on trade related issues are underway. On the other hand, Moscow is offering extensive discounts on crude oil amidst sufficient supply availability.
In August 2025, the Donald Trump administration announced a 50 percent tariff on US imports of Indian products, which was aimed at reducing New Delhi's Russian oil purchases. Notably, the US did not impose similar tariffs on China, which is also a major consumer of Russian oil.
From Trump Tariffs to Trade Talks
India did not budge to the high tariffs levied by the Trump administration, instead maintained that the purchase of oil from Russia is price-based and it will continue even further. However, during India’s ongoing negotiations with the US, interest has been expressed in purchasing additional American energy. These rates are more favorable than the discounts of around $1 per barrel from July to August.
TOI quoted data from Kepler Ltd that crude oil imports from Russia could reach about 17 million barrels per day in October. In September, the imports were 6 percent less.
A Bloomberg report stated that given the ongoing negotiations with the US, the future stance of Indian refiners on discounted Russian crude oil purchases remains uncertain. The Trump administration has been pressuring New Delhi to stop Russian oil imports. However, Indian officials have described the recent meetings with their American counterparts as ‘constructive’. At the same time, state-owned processors in India have started discussions with Middle East and African national oil companies regarding the term agreement for 2026.
Sources indicated that refiners are aiming to gain increased volume from suppliers who provide flexibility, which would include options to resell or optimise cargo arrangements if Russian imports become more viable.