Stronger Together: Why India, Russia Continue to Maintain Trade Ties Despite Trump’s Tariff Threats

As geopolitical tensions rise and pressure mounts on India to stop oil imports from Russia, both countries have remained firm in maintaining their trade relations and continuing their energy supplies.

On Wednesday, the Russian Embassy stated that Moscow is aiming to narrow the trade imbalance with New Delhi and continue with their energy supplies while wanting to remove trade barriers, as per a Reuters report.

The embassy also noted that mechanisms are already in place to ensure the steady flow of oil to India despite the political situation. This comes amid Trump’s rising threats against India regarding its oil imports from Russia.

How Russia is Maintaining Trade Relations with India?

India has been one of the biggest buyers of Russian crude since 2022, despite the role of Western sanctions in altering global oil trade. Currently, India’s External Affairs Minister S Jaishankar is on a 3-day visit to Moscow.

According to Roman Babushkin, Chargé d'Affaires of the Russian Embassy in India, “India matters very much to Russia. We understand the challenging circumstances for India, and we are committed to remove them.” He further said, “Mechanisms are there to continue oil supplies to India. We will remove further barriers to trade,” while adding that bilateral trade is expected to grow about 10% annually.

In addition to that, he said that oil shipments will continue at approximately the same level, highlighting their importance to bilateral trade. “There is no alternative to Russian crude oil as it is very competitive. India understands there is no chance to change supplies, profit [is] very high for India,” the embassy mentioned.

Further, Babushkin also commented on the recent US move to impose 50% tariffs on Indian goods. The official said, “If Indian goods are facing difficulties entering the US market, the Russian market is welcoming Indian exports.”

The embassy noted that India is the fourth largest trade partner for Russia and further underlined that energy shipments will remain at roughly the same level going forward.

“We have always managed to find ways to work in our interests despite issues. Sanctions are double standards and disrespect national interests,” they added.

Indian Oil, BPCL Resume Buying Russian Oil

On the other hand, India's state-run refiners Indian Oil and Bharat Petroleum have reportedly bought Russian oil for September and October delivery, thereby resuming purchases after discounts widened, two company officials aware of the matter told Reuters.

The resumption in Russian oil imports by Indian state refiners could reduce supplies for top buyer China which had stepped up purchases during their absence.

Earlier, the refiners halted purchases in July due to narrower discounts and after India was criticised by Washington for its purchases of Russian oil. US President Donald Trump also threatened an additional 25% levy on Indian goods, effective August 27, to penalize New Delhi for its continued buying of the oil.