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India to Increase Russian Oil Imports in September Despite U.S. Tariff Pressure
India to raise Russian oil imports in September, defying U.S. tariffs. With Moscow offering deep discounts, New Delhi prioritizes energy security over Washington’s pressure.
ND
by News Desk
2025-08-28
India to Increase Russian Oil Imports in September Despite U.S. Tariff Pressure

India is set to expand its imports of Russian crude oil in September, dealers and industry sources said, defying punitive tariffs imposed by the United States aimed at curbing Moscow’s revenues from energy exports.

Since Western sanctions on Russia following its 2022 invasion of Ukraine, India has emerged as the single largest buyer of Russian oil, capitalizing on discounted supplies. This shift has allowed Indian refiners to secure cheaper crude, meeting nearly 40% of the country’s oil needs.

According to three traders involved in the sales, Indian refiners are expected to raise imports by 10–20% in September compared to August levels, equal to an additional 150,000–300,000 barrels per day. Reliance Industries and Nayara Energy, India’s two biggest buyers, did not immediately respond to requests for comment.

The increase comes despite Washington’s decision to raise tariffs on Indian imports to 50%, part of President Donald Trump’s strategy to pressure New Delhi into scaling back purchases from Moscow. While the U.S. accuses India of “profiteering” from discounted Russian crude, Indian officials have pushed back, pointing out that the U.S. and European Union continue to buy Russian goods worth billions of dollars.

Russia, facing refinery outages due to recent Ukrainian drone strikes, is offering steeper discounts to maintain export levels. September cargoes of Urals crude are reportedly priced at $2–$3 per barrel below Brent, more competitive than August discounts.

Analysts argue that India is unlikely to reduce Russian imports significantly unless a global ban is enforced. BNP Paribas noted that tariffs are part of broader U.S.-India trade negotiations, but the economics of discounted Russian oil remain too favorable for New Delhi to abandon.

Brokerage firm CLSA warned that a sudden halt in Indian imports could remove about one million barrels per day from global supply, potentially pushing oil prices toward $100 per barrel in the short term.

Meanwhile, the European Union has tightened its price cap on Russian oil to $47.60 per barrel from September 2, restricting Western services for cargoes sold above that threshold. The combined effect of U.S. tariffs and EU caps could complicate Russia’s export strategies, but for now, India appears committed to maintaining its position as Moscow’s top energy customer.

 
Tagged:

india

Russia

EnergySecurity

USTariffs

OilTrade
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