India, as the second largest importer of Russian crude oil, will continue to purchase Russian oil despite the threat of a 100% tariff from the United States. This issue arose following the signing of the "Russia and Iran Sanctions Act of 2026" by Donald Trump, the President of the United States, which imposes heavy tariffs on countries that are major importers of Russian oil and natural gas.
India's Oil Imports from Russia
According to reports, imports of crude oil from Russia have constituted nearly half of India's total oil purchases in recent months. India, recognized as one of the largest buyers of Russian crude oil, will face serious economic challenges if heavy tariffs are imposed on goods exported to the United States. These tariffs could affect trade relations between India and the United States, especially at a time when the two countries are negotiating a bilateral trade agreement.
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India's Concerns About Tariffs
In response to this U.S. law, India has expressed concerns that these tariffs will not only negatively impact bilateral relations but could also harm the global energy market. Economic experts believe that India will continue to purchase Russian oil for economic reasons, as a rapid replacement of Russian crude oil could increase the country's import costs and fuel domestic inflation. This issue becomes more significant as Brent oil prices remain above $100 and the Middle East faces supply and transportation disruptions.
The Indian government may likely negotiate for an exemption or waiver from the new U.S. sanctions law. Meanwhile, experts believe that the United States may also be reluctant to remove millions of barrels of Russian crude oil from the market, especially as oil prices are rising and gasoline prices in the United States are increasing even during the off-peak season.
