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India is set to increase its imports of Russian oil in September, with trading sources saying that Nayara Energy and Reliance Industries plan to increase their purchases by 10-20% compared to August levels. The increase would translate to an additional 150,000-300,000 barrels per day.
The move comes despite US President Donald Trump imposing additional tariffs on India as punishment for buying Russian oil.
Russia has emerged as India’s key oil supplier since the beginning of the Ukraine conflict in February 2022 – accounting for nearly 40% of India’s crude imports. In parallel, India has become a major exporter of refined fuels to Europe since 2023.
New Delhi’s oil trade with Moscow has drawn criticism and economic punishment from the United States, which has imposed an additional 25% tariff on Indian imports from August 27, on top of 25% tariffs already in place.
In July, the EU imposed sanctions on the Vadinar refinery in Gujarat, which is owned by Nayara, an Indo-Russian private company in which Rosneft holds a 49% stake.
US officials have repeatedly claimed that Indian oil purchases are fuelling the Ukraine conflict. On Wednesday (August 27) Peter Navarro, a senior trade adviser to the US President stated that “the conflict is effectively Indian Prime Minister Narendra Modi’s war” and alleging that New Delhi’s discounted oil purchases from Moscow are helping Russia’s armed forces. US President Trump and US Treasury Secretary Scott Bessent also recently criticized India for its trade with Russia. India has called the US tariffs “unfair, unjustified, and unreasonable” and has pledged to safeguard its national interests.
The Indian External Affairs Minister, Subrahmanyam Jaishankar, has also pointed out that the European Union conducts more bilateral trade with Russia than India does.
The European Union’s 2024 bilateral trade with Russia was €67.5 billion in goods, plus an additional €17.2 billion in services. India’s bilateral trade with Russia was €58.79 billion.
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