US President Donald Trump’s fresh attempt to curb India’s oil trade with Russia through steep tariffs appears to be apparently backfiring.
Instead of scaling down, New Delhi is stepping up its purchases of discounted Russian crude, reinforcing its position as one of Moscow’s top energy partners. According to a Bloomberg news report, Russian Urals crude is being offered to Indian refiners at $3 to $4 per barrel below Brent, for shipments scheduled in late September and October. Just a few months ago, the discount was only $1 to $2.50, showing how Moscow is aggressively cutting prices to maintain India’s strong buying interest.
Trade data highlights the growing appetite: between August 27 to September 1, Indian refiners secured close to 11.4 million barrels of Russian oil, despite Washington’s new tariffs. Industry insiders also revealed that Indian refiners plan to increase Russian oil imports in September by 10 to 20 percent, or about 150,000 to 300,000 barrels per day, compared to August 2025.
US Turns Up the Heat
Last month, President Trump slapped an additional 25% penalty on Indian exports, doubling existing tariffs to 50 percent. He accused New Delhi of indirectly funding Russia’s war in Ukraine by maintaining energy ties with Moscow. White House adviser Peter Navarro went further, controversially labelled the Ukraine conflict as “Modi’s war” and accused India of profiteering by refining and re-exporting the Russian crude.
India, however, retaliated strongly. The Union External Affairs Minister S. Jaishankar argued that Russian oil imports play a vital role in stabilizing global energy prices. Similarly, Union Oil Minister Hardeep Singh Puri dismissed the US accusations, stressing that all of India’s transactions with Russia are transparent and lawful.
Strengthening Ties with Russia and Beyond
Beyond the energy trade, New Delhi is tightening strategic bonds with Moscow. At the recently concluded Shanghai Cooperation Organization (SCO) Summit in China, Prime Minister Narendra Modi described ties with Russia as ‘special‘ while echoing Chinese President Xi Jinping’s call to engage as “partners rather than rivals, where the Dragon & Elephant must come together as neighbours’, sending out clear signals to Trump’s Republican government.
Billions Saved Through Discounted Oil
Since early 2022, India’s reliance on Russian crude has surged from under 1% to nearly 40% of total imports. The financial trade analysts estimate that India has saved at least $17 billion between April 2022 and June 2025 thanks to the discounted barrels.
New Delhi continues to emphasize that its purchases break no international laws, pointing out that Western nations still import billions worth of Russian goods. Indian officials argue that the West’s criticism reflects double standards, while India prioritizes energy security and affordable fuel for its population.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
