India to Keep Buying Russian Oil Despite US Tariffs: Sitharaman

Finance minister Nirmala Sitharaman on Friday said India will continue importing Russian oil as it remains cost-effective, despite steep US tariffs on Indian goods.

“We will have to take a call which source suits us the best. So we will undoubtedly be buying it,” Sitharaman told CNN-News18, stressing that India, the world’s third-largest oil importer, must prioritise its economic interests.

Crude and refined fuels account for a major share of India’s foreign exchange outflow, she noted. “Whether it is Russian oil or anything else, it’s our decision to buy from the place which suits our needs in terms of rates, logistics, anything,” she said.

Her comments come weeks after US President Donald Trump imposed a 50% tariff on Indian imports, alleging that New Delhi’s oil purchases were helping finance Moscow’s war in Ukraine. Sitharaman said the government is working on a relief package for exporters hit by the punitive duties and added that reforms like the Goods and Services Tax (GST) would help offset the impact.

Trump renewed his criticism on Friday, posting on Truth Social: “Looks like we’ve lost India and Russia to deepest, darkest China. May they have a long and prosperous future together!” The remark followed Prime Minister Narendra Modi’s participation in a summit in Tianjin alongside Russian President Vladimir Putin and Chinese leader Xi Jinping.

Trump has accused India of becoming the largest buyer of Russian seaborne crude since the 2022 Ukraine invasion, benefiting from discounted supplies while the US cut back its purchases.

New Delhi has defended its position, saying imports are guided by market conditions, national security imperatives, and strategic assessments. Officials argue India’s purchases contribute to stabilising global markets.

The finance minister’s remarks come amid escalating trade frictions, with negotiations to ease the tariff burden collapsing and a planned visit by US trade officials to India cancelled last month.