FX.co ★ India to Keep Buying Russian Oil Despite U.S. Tariffs

India will persist in purchasing Russian oil due to its cost-effectiveness, Finance Minister Nirmala Sitharaman stated, even amidst substantial U.S. tariffs on Indian goods associated with its energy exchanges with Moscow. "We must make decisions that align with our best interests, and therefore, we will certainly continue our purchases," she affirmed, highlighting that a significant portion of India's foreign exchange is allocated to crude and fuel imports. As the largest importer of Russian seaborne crude, India maintains that its acquisitions help stabilize global markets, despite the boycott of Russian oil by Europe and the U.S. over the Ukraine conflict. Last month, President Trump enforced a 50% tariff on Indian imports, alleging that New Delhi's oil procurements finance Moscow's wartime activities. Concurrently, U.S. Commerce Secretary Howard Lutnick urged India to "support the dollar" and cease its Russian acquisitions, forecasting that India would return within months to negotiate a trade agreement. In fiscal year 2024/2025, oil and refined fuel constituted roughly a quarter of India's imports.