The US administration announced on Saturday, February 7, that the 25% penalty imposed on India for purchasing Russian oil has been lifted. Additionally, the tariff on products imported from India has been reduced from 25% to 18%. This decision by the US administration appears to be a significant victory, but the question arises: Is the tariff removal merely a function of Indian diplomacy?
This question is pertinent because the White House executive order states that India has ceased purchasing oil from Russia. In contrast, the joint statement following the India-US trade deal makes no such mention.
What is the truth behind India’s purchase of oil from Russia?
The US administration claims that the Indian government promised to stop purchasing oil from Russia, and, in accordance with this promise, India has begun reducing its oil imports from Russia; following this, the US has waived the 25% penalty. However, India has not yet issued any statement regarding the suspension of oil purchases from Russia.
| Year | Imports from Russia (bpd) | Proportion of India’s total crude imports | Trending / Commenting |
|---|---|---|---|
| 2021 | 100,000 (0.1 million) | 2–3% | Russia is the first small supplier |
| 2022 | 740,000 | 15% | A sharp increase in purchases from Russia after Western sanctions |
| 2023 | 1,754,000 | 36–39% | Russia became India’s largest supplier. |
| 2024 | 1.7–2.08 million | 35–40% | Statistics show that there have been 2M+ bpd in several months |
| 2025 | 1.2–1.8 million | 20–35% | January decline; tariff pressure |
Even after the India-US trade deal, no such joint statement has been issued. Consequently, the US administration’s claim that India has made a promise raises doubts. The Indian government has consistently stated that decisions on purchasing oil from Russia will be made with due regard to market conditions and the interests of the country’s citizens. Russia was India’s largest supplier in 2023 and remains at the top of the list in 2025. However, according to India’s oil import data, imports reached their lowest level in December 2025.
Is it possible that India will stop purchasing oil from Russia?
India and Russia have a long-standing relationship and are friendly nations. Russia has supported India on the global stage through various adversities. India has openly exercised its veto four times in support of India. Russia has also consistently supported India in defence deals. During Operation Sindoor, India thwarted Pakistani attacks using the Russian S-400 defence system. As for oil purchases, Russia contributes the largest share of India’s oil imports.
In 2023, India purchased 39 percent of its total oil imports from Russia. In 2025, this import fell to between 20 and 35 percent. While India has reduced its imports, it is unlikely to cease purchasing oil from Russia entirely. This is because India has signed numerous contracts with Russia, and it is impossible to break them.
Can American oil replace Russian oil for India?
It is very difficult for India to purchase oil from the US. This is because shipping oil from the US is very expensive. Shipping oil from the US costs twice as much as importing oil from West Asia. US crude oil is lighter and less viscous, whereas Indian refineries are designed to process medium-sour oil. This is because India has been purchasing oil from Russia and West Asia, where similar quality oil is available. Therefore, it is unlikely that crude oil imports from the US will increase. However, India may increase its purchase of gas, or LNG, from the US.
Has India neglected its own interests to secure tariff reductions?
Ever since the US announced a tariff reduction on India, the question on everyone’s mind is whether India has neglected its own interests. The answer to this question is that India has not suffered any losses in the deal with the US. In the agriculture and dairy sectors, India has not given concessions to the US and has protected its interests.
