Highlights:
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The US says India stopped buying Russian oil after a 25 percent tariff imposed by President Donald Trump
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Treasury Secretary Scott Bessent made the remarks at the World Economic Forum in Davos
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A proposed US bill could impose tariffs of up to 500 percent on countries buying Russian oil
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China is expected to face increased scrutiny under the proposed sanctions
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India maintains its energy imports are based on market conditions and affordability
The United States has claimed that India has halted its purchases of Russian oil after President Donald Trump imposed a 25 percent tariff, signaling what Washington describes as a shift in India’s energy sourcing under mounting trade and geopolitical pressure.
Speaking on the sidelines of the World Economic Forum annual meeting in Davos, US Treasury Secretary Scott Bessent said the tariff had an immediate impact on India’s approach to Russian crude imports. His comments were made during separate interviews with Fox News and Fox Business.
According to Bessent, India scaled back and then stopped buying Russian oil after the tariff announcement, a move the US administration is presenting as evidence that trade measures can influence energy policy decisions.
India and Russian oil imports under US trade pressure
“India started buying Russian oil after the conflict began,” Bessent said, referring to the period following Russia’s invasion of Ukraine. “But President Trump put a 25 per cent tariff on them, and India has geared down and has stopped buying Russian oil.”
The statement marks one of the strongest public claims by a senior US official regarding India’s current energy strategy. Since 2022, India had emerged as one of Russia’s largest buyers of crude oil after Western countries imposed sanctions on Moscow. Russian oil, sold at discounted rates, became a significant part of India’s energy basket, helping the country manage fuel prices and control inflation.
New Delhi has consistently defended its purchases of Russian crude, arguing that India’s decisions are driven by market realities, affordability, and energy security rather than political alignment. Indian officials have maintained that the country complies with international law while safeguarding domestic economic interests.
India’s position on energy sourcing and affordability
Despite Bessent’s remarks, India has not officially confirmed that Russian oil imports have completely stopped. The government has repeatedly stated that India evaluates energy imports based on price, availability, and supply stability, especially given the country’s dependence on imported fuel.
Russian oil played a role in cushioning India from global price volatility during a period of high inflation and supply disruptions. Officials in New Delhi have argued that access to discounted crude helped protect consumers and industries, while also supporting economic growth.
The US claim that India has halted Russian oil purchases comes at a time when Washington is debating significantly tougher sanctions aimed at reducing Russia’s energy revenues.
Proposed US sanctions and their impact on India
Bessent’s comments coincide with discussions in Washington over a proposed Russia Sanctions Bill that could escalate economic pressure on countries continuing to buy Russian oil. The legislation, introduced by Republican Senator Lindsey Graham, would allow the US to impose tariffs of at least 500 percent on nations that persist in importing Russian crude.
While the bill has not yet been passed by the US Senate, Bessent suggested that President Trump already has broad authority under existing laws to take strong action. He indicated that the administration is prepared to use tariffs and other trade measures to limit Russia’s oil income, which the US views as central to financing Moscow’s war effort.
The proposed sanctions are expected to focus heavily on China, currently the largest buyer of Russian oil. US officials have repeatedly argued that Beijing’s continued purchases weaken international efforts to isolate Russia economically.
India compared with China in US sanctions debate
In contrast to China, India is being cited by US officials as an example of how trade pressure can alter behavior. By claiming that India has stepped back from Russian oil, the US administration is signaling that tariffs could be an effective tool in shaping global energy flows.
However, analysts note that India’s energy strategy has historically been flexible, with refiners adjusting purchases based on price movements, shipping costs, and supply conditions. Any reduction in Russian oil imports by India could reflect short-term commercial decisions rather than a permanent policy shift.
India, tariffs, and geopolitical tools
The situation underscores how trade policy and tariffs are increasingly being used as geopolitical instruments. For India, balancing energy security, economic stability, and external pressure remains a complex challenge.
As Washington continues to weigh tougher sanctions, questions remain about whether India’s approach to Russian oil represents a lasting change or a temporary adjustment driven by market dynamics and trade considerations.
For now, the US claims mark a significant moment in the evolving global response to the Russia-Ukraine conflict, with India positioned at the center of debates over energy, trade, and geopolitical alignment.
