Russia has reaffirmed its commitment to maintaining oil supplies to India, leveraging special mechanisms to counter US tariffs, a Russian embassy official announced in New Delhi on 20 August 2025. Amidst escalating tensions with the United States, which has imposed a 25% tariff on Indian exports due to New Delhi’s reliance on Russian oil, Moscow’s resolve underscores the deepening strategic partnership between the two nations.
Russia’s Unwavering Oil Commitment
Roman Babushkin, Russia’s chargé d’affaires in India, assured journalists that Russia’s oil exports to India, which account for approximately 35% of India’s total crude imports, will remain steady despite external pressures. “We have a very, very special mechanism to ensure uninterrupted oil supplies,” Babushkin stated, highlighting Moscow’s determination to preserve its energy trade with India. This comes as the US prepares to enforce an additional 25% tariff on Indian goods from 27 August, citing India’s increased oil purchases from Russia since the Ukraine conflict began in 2022.
India’s oil imports from Russia have surged from a mere 0.2% before the war to a significant portion of its energy needs, driven by competitive pricing and a 5-7% discount per barrel. Evgeny Griva, Russia’s Deputy Trade Commissioner, described the trade as “very profitable” for India, noting that New Delhi is unlikely to shift suppliers given the economic benefits. The introduction of rupee-rouble payment systems has further facilitated trade, resolving earlier issues that trapped billions in Indian banks.
Navigating US Tariffs and Global Pressures
The US tariffs, part of a broader strategy to pressure nations importing Russian oil, have strained India-US relations. New Delhi has labelled the move “unjustified and unreasonable,” arguing that its oil purchases align with international norms and help stabilise global markets. Indian refineries, including state-owned Indian Oil Corporation and Bharat Petroleum, have resumed buying Russian oil for September deliveries, undeterred by narrowing discounts. Babushkin criticised the US approach as “neocolonial,” asserting that Russia’s economy remains resilient despite sanctions, and its market is open to Indian exports facing US barriers.
India’s foreign ministry has emphasised its energy security priorities, with spokesperson Randhir Jaiswal stating that sourcing decisions are based on market availability and global circumstances. This stance reflects India’s balancing act between maintaining its strategic partnership with Russia and navigating Western pressures. The bilateral trade, which reached $68.7 billion in FY 2024-25, is projected to grow by 10% annually, with a target of $100 billion by 2030.
Forging a Greater Eurasian Partnership
Beyond oil, Russia is pushing for deeper ties with India and China through a proposed trilateral framework. Babushkin expressed optimism about resuming the Russia-India-China mechanism, which could bolster a “greater Eurasian partnership.” This initiative aligns with high-level diplomatic engagements, including Prime Minister Narendra Modi’s planned visit to China and President Vladimir Putin’s anticipated trip to New Delhi by year-end. The leaders are also expected to converge at the Shanghai Cooperation Organisation summit starting 31 August, signalling a strengthening of regional alliances.
Recent diplomatic exchanges, such as Chinese Foreign Minister Wang Yi’s visit to New Delhi, indicate efforts to mend India-China relations strained since the 2020 border clash. Russia’s advocacy for trilateral talks underscores its ambition to counter Western influence and foster economic cooperation across Asia. Babushkin noted, “India matters greatly to Russia,” emphasising Moscow’s commitment to resolving trade barriers and enhancing mutual growth.
A Resilient Strategic Partnership
Russia’s special mechanisms to sustain oil supplies to India highlight the robustness of their strategic partnership, undeterred by US tariffs. As India navigates global energy demands and geopolitical tensions, its reliance on Russian oil remains a cornerstone of economic stability. With ambitions for a broader Eurasian partnership and growing bilateral trade, Russia and India are poised to deepen their collaboration, ensuring that oil and economic ties continue to thrive despite external challenges.
Published in SouthAsianDesk, August 20th, 2025
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
