New Delhi: External Affairs Minister S. Jaishankar, during his visit to Moscow this week, firmly defended India’s continued imports of Russian crude, calling them a stabilising factor for global energy markets. Standing alongside Russian Foreign Minister Sergey Lavrov, Jaishankar pushed back against Western criticism, noting that China — not India remains the largest buyer of Russian oil, while Europe continues to import Russian LNG in significant volumes.
The remarks came as the US doubled tariffs on Indian goods to 50 per cent, adding an additional penalty linked to energy trade with Moscow. Jaishankar called this “perplexing,” stressing that India’s discounted oil purchases prevented supply shocks and “did exactly what the West had informally asked for to keep global energy markets steady.”
A resurfaced 2024 video of former US Ambassador to India Eric Garcetti appeared to bolster New Delhi’s case. Speaking at a Washington forum, Garcetti had said: “They bought Russian oil because we wanted somebody to buy Russian oil at a price cap. That was not a violation. It was the design of the policy.”
Similarly, in 2022, US Treasury Secretary Janet Yellen had publicly stated that Washington was “happy for India to buy as much Russian oil as it wants” even above the cap provided it helped prevent a global price spiral.
India’s oil imports from Russia surged from less than 0.2% in 2021 to 36–40% of total crude imports by 2024–25, averaging 1.7–2 million barrels per day. This shift absorbed Russian barrels stranded by Western sanctions and prevented Brent and WTI prices from surging by $10–15 a barrel, according to analysts.
By securing steep discounts and diverting some demand away from West Asia, India not only reduced its import bill but also introduced new balance in global supply. “Without India’s intervention, markets would have faced dangerous shortages and volatility,” said one energy strategist.
India’s trade has largely complied with the G7’s $60 price cap, with transactions often settled in non-dollar currencies such as rupees and dirhams. This allowed flows to continue legally while reducing dependence on Western financial systems.
Crucially, much of the Russian crude is refined in India into diesel, petrol, and jet fuel, which are then re-exported to Europe. Data from Vortexa and Kpler show significant volumes of these refined fuels ending up in the Netherlands, France, and Italy, giving European economies indirect access to Russian energy despite their sanctions.
This creates a paradox: Western governments publicly criticise India’s purchases, yet their economies quietly benefit from the availability of affordable refined products. Experts warn that pressuring India to halt Russian imports would shrink global fuel supplies, risk fresh inflation, and undermine fragile Western recoveries.
