The ongoing Ukraine-Russia conflict has sparked a fresh economic flashpoint — this time involving India, as a full-fledged tariff war over fuel imports intensifies. The Trump administration has imposed steep 50 per cent tariffs and penalties on Indian crude imports from Russia, accusing New Delhi of indirectly financing the war in Ukraine.
In a striking revelation on Wednesday, a senior Russian official disclosed that India is receiving Russian crude at an average discount of five per cent, a fact previously kept under wraps.
“It’s a commercial secret,” said Evgeniy Griva, Deputy Trade Representative of Russia to India. Later, the Russian embassy clarified that regarding oil import prices amid tariffs, “a five per cent swing is possible subject to negotiation.”
Speaking alongside charge D’affairs Roman Babushkin at a media briefing in New Delhi, Griva also said that Russia supplies approximately 40 per cent of India’s annual crude oil demand — roughly 100 million tonnes out of India’s 250 million tonnes total imports.
Despite US pressure, India has stood firm, asserting its sovereign right to energy security and freedom of trade partnerships. In response to Washington’s latest punitive measures, Moscow praised India’s refusal to be coerced.
“Russia has a special mechanism to continue crude oil supplies to India,” said charge D’affairs Babushkin. “We are committed to working with India to resolve any issues, including those related to tariffs, shipping, and insurance.”
However, India’s Ministry of External Affairs (MEA) pushed back strongly earlier this month, accusing the West of “duplicity and double standards” over energy trade. In a detailed rebuttal, the MEA highlighted that the US had earlier encouraged India to buy Russian oil when European buyers stopped purchases following the war’s escalation.
“Our oil imports from Russia are a pragmatic response to global market dynamics,” the MEA stated. “The US and EU continue trading with Russia in non-essential sectors, while India is being penalised for securing vital energy supplies.”
Russian officials echoed this sentiment, calling US actions a form of economic coercion. Griva reiterated that trade negotiations between Indian refiners and Russian exporters remain strictly commercial and mutually beneficial.
As the geopolitical standoff continues, India appears determined not to yield to Western pressure, while Moscow doubles down on securing its energy partnership with one of the world’s largest oil consumers.