Tariff hikes and Trump criticism: India cuts oil cooperation with Moscow

Indian refiners, one of the largest importers of Russian oil, are preparing to reduce purchases in the coming weeks. The move could be seen as a partial concession to Washington ahead of the US tariff hike, but it also suggests that India has no intention of severing its energy ties with Russia.

According to Bloomberg , state-owned and private oil companies, including major player Reliance Industries Ltd., plan to buy 1.4 million to 1.6 million barrels of oil per day for deliveries starting in October. For comparison, in the first half of 2025, the average daily volume of purchases was about 1.8 million barrels.

The administration of US President Donald Trump is increasing pressure on India in the context of energy trade with Russia, seeking to reduce the trade deficit between the countries. In particular, from August 27, a doubling of tariffs on Indian goods will come into effect.

At the same time, sources report that India’s import volumes of Russian oil may change if a new trade agreement with Washington is reached, which would provide for the easing of sanctions pressure on Delhi due to financing Russia’s war in Ukraine.

Since late last month, Trump has been actively criticizing India for increasing its purchases of Russian oil since the start of the full-scale war. According to Kasatkin Consulting, while previously imports were insignificant, India now accounts for 37% of Russian oil exports. The US administration has publicly condemned the actions of Indian energy companies, demanding changes in their policies.

As a reminder, US Treasury Secretary Scott Bessant sharply criticized India for its aggressive increase in Russian oil imports during the war against Ukraine. According to him, New Delhi not only purchases raw materials at reduced prices, but also resells products from them on international markets, receiving significant profits from this.

As reported, the state-owned bank of India, which is the largest in the country, has stopped processing payments for the oil refining company Nayara Energy, which is run by Rosneft.

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