What Trump Got Wrong ? Is India Really Ending Russian Oil Purchases?

President Trump recently stated that India had stopped buying oil from Russia, calling it a “good step.” However, Indian government officials and industry insiders swiftly clarified that India continues to import Russian crude, especially through private refiners. While state-run companies paused purchases briefly due to shrinking Russian price discounts and U.S. trade threats, the narrative of a full halt is inaccurate. India's policy remains guided by national interest—balancing affordability, supply security, and adherence to global price cap frameworks. Though Western pressure and Trump’s 25% tariff declaration have introduced new trade tensions, India's energy decisions continue to be pragmatic, seeking stability amidst volatile geopolitics.

Trump Claimed India Stopped Buying Russian Oil
Former President Trump announced he had "heard" that India would no longer purchase Russian oil and praised the supposed move as positive, linking it to his new 25% tariff on Indian goods. He also implied additional penalties tied to India's defense and energy ties with Russia. 

India’s Government Rejected the Assertion Immediately
Indian officials responded quickly, stating that imports have not ceased. Ministry sources affirmed that India's oil procurement continues based on price, logistics, crude grade, and inventory needs, not hearsay or external pressure. 

State Refiners Paused Purchasing Russian Crude Briefly
According to multiple Reuters reports, state-owned refiners—including Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery—did not book Russian cargoes for about a week. This pause was attributed to declining discounts and geopolitical uncertainty. 

Private Refineries Continue Contracts With Russia
Major private entities like Reliance Industries and Nayara Energy—linked with Russian firm Rosneft—remain active buyers under long-term contracts. These companies account for over 60% of India’s Russian oil imports. 

India’s Strategy Is Rooted in Economics and Energy Stability
Officials emphasize India’s sourcing strategy prioritizes affordability and uninterrupted supply. Industry analysts also credit India with helping keep global oil prices from spiking during COVID-era disruptions and OPEC+ constraints. 

Russian Crude Is Not Sanctioned—Only Price Capped
International regulations apply a G7/EU price cap on Russian oil, not sanctions. Indian refiners continue to comply with these caps ($60–$47.60 per barrel) and avoid sanctioned sources like Iran or Venezuela. 

India Seeks to Ensure Global Market Stability
Energy strategists say India’s imports have eased supply constraints that could otherwise have sent crude prices beyond $137/barrel in March 2022. With OPEC+ production cuts, India's role helped avoid inflationary pressures worldwide. 

Trump’s Tariffs Deepen U.S.–India Friction
Trump’s trade stance—including tariffs and criticism of India’s Russian ties—has heightened tension. Economists caution such rhetoric could undermine ongoing trade and strategic negotiations between the two nations. 

India Reaffirms Relations With Russia and America
Despite U.S. pressure, India reiterated its commitment to maintain a nuanced foreign policy that includes both strategic ties with Russia and enduring engagement with the United States. 

Potential Russian Response if Oil Imports Halted
Energy analysts suggest Moscow could retaliate by halting oil flows through pipelines like CPC. Any significant drop in exports from India could cause global price shocks given India's reliance on roughly 35% Russian crude. 

Russia Remains India’s Top Crude Supplier Despite New Conditions
In 2024, Russia supplied over 40% of India’s crude imports—the highest share by value, making it the leading source despite emerging constraints and geopolitics. 

July Imports Declined but Didn’t Fully Stop
In July 2025, India’s Russian crude imports fell about 24% from June, down to 1.6 million barrels per day, constituting roughly 33.8% of total imported crude—signaling adjustment, not abandonment. 

India Balances Realpolitik With Supply Decisions
Officials argue India is navigating between energy security needs, international norms, and diplomatic pressure. They maintain flexibility to shift suppliers if necessary but refuse to compromise sovereignty. 

Disclaimer
This article is based entirely on credible and verified reporting from Reuters, Economic Times, ANI, Hindustan Times, and Times of India regarding India’s oil import decisions and diplomatic context. It contains no speculation or promotional content. Myhospy.com is not responsible for policy or investment decisions made based on this article.