Written by The Banking Post
The statement comes weeks after US President Donald Trump slapped a 50 percent tariff on Indian goods, arguing that New Delhi’s energy imports are helping fund Moscow’s war in Ukraine.
India will continue purchasing Russian oil as it remains the most economical option, Finance Minister Nirmala Sitharaman said Friday, brushing aside US pressure and steep tariffs on Indian exports.
“Whether it is Russian oil or anything else, it’s our decision to buy from the place which suits our needs in terms of rates and logistics. So we will undoubtedly be buying it,” Sitharaman told a local broadcaster. She noted that oil and refined fuel purchases account for about a quarter of India’s total imports.
India, the world’s third-largest oil importer, has emerged as the biggest buyer of Russian seaborne crude since Western sanctions forced Moscow to offer discounts. New Delhi argues its purchases have kept global markets stable.
US Commerce Secretary Howard Lutnick, however, warned India to align with Washington. “Either support the dollar, support the United States, support your biggest client – the American consumer – or pay a 50% tariff. Let’s see how long this lasts,” he said in a TV interview, predicting India would return to talks “within months.”
Tensions have been further stoked by Prime Minister Narendra Modi’s appearance alongside Russian President Vladimir Putin at a China-led summit, where leaders of North Korea and Myanmar also attended. The show of solidarity, dubbed the “Axis of Upheaval” by some observers, has fueled concerns of a deepening rift between New Delhi and Washington.
Trade talks aimed at reducing US tariffs have collapsed, with a planned visit by US officials to India cancelled last month. Meanwhile, US Treasury Secretary Scott Bessent accused India of “profiteering” by refining discounted Russian oil and reselling it at higher prices.
Trump added fuel to the fire in a social media post: “Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!”
