United States President Donald Trump has welcomed reports that India is ceasing its purchases of Russian oil, calling it a “good step,” even as his administration’s recent imposition of steep tariffs on Indian goods continues to fuel trade tensions between the two nations.
The development comes after President Trump announced a 25% tariff on Indian exports, effective August 1, 2025, coupled with an “additional penalty” specifically targeting India’s strategic trade relationship with Moscow, particularly its significant oil and military imports.
While speaking to reporters on Friday, President Trump stated, “I understand that India is no longer going to be buying oil from Russia. That’s what I heard. I don’t know if that’s right or not, but that’s a good step.”
Reports from industry sources indicate that several state-run Indian refiners, including Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Mangalore Refineries and Petrochemicals Ltd (MRPL), have indeed paused procuring Russian crude oil from the spot market in the wake of the new U.S. tariffs and warnings. These public sector refiners account for over 60% of India’s substantial refining capacity.
However, private refiners like Reliance Industries and Nayara Energy, which have long-term agreements for Russian crude, may continue their purchases.
The Ministry of External Affairs (MEA) in India, when asked about the reports, maintained that India’s energy sourcing decisions are guided by market dynamics and national interests. MEA spokesperson Randhir Jaiswal stated on Friday that India looks at “what is available in the market and the prevailing global situation” and was “not aware of any specifics” regarding Indian oil companies halting Russian imports.
This situation unfolds against a backdrop of escalating trade friction. President Trump has repeatedly criticized India’s high tariffs on American goods and what he terms “obnoxious” non-monetary trade barriers. The new tariffs, he has asserted, are necessary to address a long-running trade imbalance and also to exert pressure on India regarding its ties with Russia amidst the ongoing conflict in Ukraine.
India has become the largest buyer of seaborne Russian crude, with imports surging significantly since 2022. This shift has been a point of contention for the U.S. administration, which views these purchases as indirectly supporting Russia’s war efforts.
Despite the recent trade challenges, both sides have expressed a desire to continue negotiations for a “fair, balanced and mutually beneficial” bilateral trade agreement. However, sticky points remain, particularly concerning India’s sensitive agriculture and dairy sectors, which it has been unwilling to open up.
