What happened?
On August 2, 2025, a new report confirmed that Indian oil refiners continue to import crude oil from Russia, countering recent speculation that India had halted purchases under US pressure. The clarification comes after US President Donald Trump stated that India “may no longer be buying oil from Russia. Indian oil companies are making purchase decisions based on price, crude quality, logistics, and inventory requirements. The report also pointed out that Russian oil has never been sanctioned directly. Instead, it is subject to a G7/EU price-cap mechanism designed to restrict revenue to Russia without disrupting global supply. Indian refiners have adhered to this cap and have not violated international frameworks.
Why it matters to India
India, which imports around 85% of its crude oil, has defended its right to secure affordable energy based on national interest. By purchasing discounted Russian oil, India has helped maintain global oil market stability during a time of major supply disruptions.Officials argue that without India absorbing this supply, prices could have surged beyond the $137 per barrel peak seen in March 2022. India’s energy choices are pragmatic, legal, and essential for both domestic needs and broader economic stability, particularly as global inflation remains a concern.