India Unfazed by Trump, NATO Tariff Threats on Russian Oil; Diversifies Suppliers

India Unfazed by Trump, NATO Tariff Threats on Russian Oil; Diversifies Suppliers

Indian refineries have consistently purchased Russian oil at reduced prices, a practice that many other nations avoided due to Western sanctions imposed on Moscow following its military action in Ukraine.

RMN News Trade Desk
July 17, 2025

New Delhi, India – India’s Oil Minister, Hardeep Singh Puri, has declared the nation’s readiness to manage potential disruptions in Russian oil imports, even in the face of possible sanctions from the United States and NATO. Puri expressed strong confidence that India is capable of meeting its energy requirements should crude oil imports from Russia face sanctions or secondary tariffs.

The assurance comes after US President Donald Trump announced a 100% tariff on Russian exports, including oil, along with equivalent secondary charges for nations importing Russian goods. This measure is intended to be enforced after a 50-day ultimatum for Moscow to conclude its conflict with Ukraine.

While the specifics of Trump’s announcement remain unclear, NATO’s Secretary General, Mark Rutte, also issued warnings to India, China, and Brazil regarding potential secondary sanctions due to their ongoing commercial relations with Russia.

Rutte urged these countries to engage with Russian President Vladimir Putin to seriously consider a peace agreement with Ukraine, stating that otherwise, the situation “will slam back on Brazil, on India, and on China in a massive way”.

Despite these warnings, Minister Puri remains confident, stating, “I’m not worried at all. If something happens, we’ll deal with it“. He highlighted India’s strategic approach to manage any disruption in Russian imports by accessing supplies from emerging producers like Guyana and established ones such as Brazil and Canada.

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Additionally, India is actively expanding its exploration and production initiatives. Puri noted that India has significantly diversified its sources of supply, increasing the number of countries it purchases from approximately 27 to about 40. Indian Oil Corp also has a contingency plan, with its Chairman A.S. Sahney indicating that if Russian supplies face disruption, the company would revert to its pre-Ukraine crisis supply template, when Russian supplies to India were below 2%.

Since February 2022, Indian refineries have consistently purchased Russian oil at reduced prices, a practice that many other nations avoided due to Western sanctions imposed on Moscow following its military action in Ukraine. Russia has maintained its position as India’s main oil supplier, contributing approximately 35% of the nation’s total imports, followed by Iraq, Saudi Arabia, and United Arab Emirates.

During the first six months of this year, India’s petroleum imports from Russia slightly increased, with private sector refineries, Reliance Industries Ltd and Nayara Energy, accounting for approximately 50% of the total Russian purchases.

However, the potential US penalty tariffs on nations purchasing Russian oil could impact India’s preference for these discounted barrels. There is a concern that the advantages of lower prices might not compensate for the impact on India’s exports to America, particularly during ongoing trade negotiations between the two countries.