NEW DELHI: The United States President Donald Trump cautioned India against purchasing discounted oil from Russia, warning that such transactions could strengthen Moscow’s economy.
The reports suggest that Trump, during his time in office, also signaled the possibility of imposing higher tariffs on Indian goods if New Delhi continued expanding its energy trade with Russia.
Furthermore, Indian officials initially maintained that buying Russian oil was a matter of national security and economic necessity. They argued that India, as one of the world’s largest energy consumers, could not suspend energy imports based on external pressure.
Some Indian representatives were also quoted as saying that several countries, including the United States, continued to benefit from trade with Russia.
In this regard, despite the firm public stance, industry developments over the past months indicate a gradual shift.
There are several Indian companies began reducing their dependence on Russian crude, prompting concerns at one point that India might face domestic fuel shortages if alternative supplies were not secured in time.
The government later moved to diversify its sources, easing those concerns. Moreover, one of India’s largest private-sector conglomerates and led by billionaire Mukesh Ambani, halted imports of Russian crude for its refining needs.
The decision is expected to increase Reliance’s operational costs, as replacement supplies from the Middle East or the United States are generally priced higher.
In addition, media reports in the United States have further claimed that long-term oil supply agreements between Indian companies and Russia, some extending up to a decade, may no longer hold their earlier importance due to changing market conditions and diplomatic considerations.
However, Indian authorities have not issued a formal statement on the reported reduction in Russian oil purchases, analysts believe New Delhi is seeking to balance economic priorities with the strategic need to maintain stable relations with multiple global partners.
