India vs Pressure: Why New Delhi Is Not Backing Down on Russian Oil Amid Global Scrutiny

Trump's 'Good Step' or Geopolitical Misunderstanding?

Former U.S. President Donald Trump’s recent comments have reignited international debate on India’s energy policy. Speaking to the media, Trump claimed that India may be halting purchases of Russian oil, calling it “a good step”—a statement that echoed earlier assertions made by U.S. Secretary of State Marco Rubio. But India’s Ministry of External Affairs (MEA) responded swiftly, clarifying that no such decision has been made, and reaffirming that India’s energy procurement is guided by national interest and market dynamics.

The Background: What's Driving the Noise?

On July 31, media reports (including Reuters) claimed that Indian state-owned refineries had suspended Russian oil purchases in response to narrowing discounts and U.S. tariff threats. This fueled speculation in Washington and beyond, culminating in Trump’s Friday remarks.

Yet, according to senior Indian officials, this narrative is misleading.

  • India remains committed to energy affordability and national security, and continues purchasing oil based on economic logic—not external pressure.

  • The Indian government clarified that no formal decision to pause Russian oil imports has been communicated to or taken by oil companies.

Sanctions vs. Price Cap: A Legal Grey Area

Despite global scrutiny, it is crucial to understand that Russian crude has not been sanctioned—it is governed under a price cap regime enforced by the G7 and EU, which aims to restrict revenue to Russia without destabilising oil markets.

India has strictly adhered to this framework:

  • Oil Marketing Companies (OMCs) have respected the $60 price cap.

  • A new EU-recommended cap of $47.6 per barrel will be effective from September.

  • India has avoided sanctioned oil from Iran and Venezuela, unlike its purchases from Russia which remain legally compliant.

Why India Needs Russian Oil

India is the third-largest global energy consumer, importing 85% of its crude oil requirements. Russian oil became a strategic energy lifeline post-Ukraine war, particularly when global prices surged in March 2022 to $137 per barrel.

Sources within the Indian government emphasised:

“Had India not absorbed discounted Russian crude—combined with OPEC+ cuts of 5.86 million barrels/day—global oil prices would have soared beyond 2022 peaks, worsening global inflation.”

India’s policy helped maintain global price stability, despite mounting pressure from Washington.

Political Optics vs Economic Reality

The Trump administration recently announced:

  • 25% tariffs on Indian goods, citing high tariffs imposed by India on U.S. exports.

  • Possible penalties on India for buying Russian oil, though no specifics have been finalised.

Trump accused India of having “one of the highest tariffs in the world” and expressed that the U.S. “does not do much business with India” due to unfair trade practices—remarks that come even as he called PM Narendra Modi a “friend”.

Indian officials, however, reiterated that the India-U.S. relationship remains strong, and dialogue on trade and tariffs continues through appropriate diplomatic channels.

India’s Energy Policy: Guided by Interests, Not Intimidation

India has consistently argued that its energy sourcing decisions are apolitical and rooted in:

  • Market affordability

  • National interest

  • Energy security

  • International law

Despite pressure, India has kept oil markets liquid, functional, and competitive. Its refiners continue to buy from Russia, considering:

  • Grade of crude

  • Pricing

  • Inventories

  • Shipping logistics

Furthermore, India has not bypassed sanctions, and has stayed compliant with U.S.-backed pricing frameworks, avoiding outright bans.

Global Hypocrisy? EU’s Silent Imports

While India is often spotlighted, statistics tell another story:

  • The European Union was the largest importer of Russian LNG, buying 51% of Russia’s exports in recent months.

  • China (21%) and Japan (18%) followed.

  • The EU also remained top buyer of Russian pipeline gas, with 37% market share.

These figures undercut the narrative of India’s supposed non-compliance or divergence from international expectations.

Conclusion: Sovereignty over Optics

India’s stance reflects a mature and strategic energy policy, tailored for both domestic welfare and global stability. The MEA’s message is clear: India will not compromise on sovereign decisions, even in the face of powerful diplomatic rhetoric.

While former President Trump’s remarks may dominate headlines, the reality on the ground is rooted in data, diplomacy, and law—not posturing. And for now, India’s oil flow from Russia continues—calculated, legal, and essential.


Location: Pune, Maharashtra, India

Comments

Post a Comment