New Delhi [India], August 4 (ANI): US President Donald Trump’s claim that India is buying massive amounts of Russian oil and selling it on the open market for big profits “is factually incorrect and misleading,” think tank GTRI has said, noting that a key reason New Delhi stepped up Russian oil purchases was to help stabilize global oil markets after Western sanctions disrupted traditional supply chains.
In his comments came soon after Trump said that the United States will “substantially raise” the tariff paid by India for buying “massive amounts of Russian Oil” much of which is “being sold in open market”, Global Trade Research Initiative (GTRI) Founder Ajay Srivastava Trump has targeted India but China buys more Russian oil.
“Mr Trump’s decision to raise tariffs on India citing oil trade is not only unjustified–it ignores market realities, misrepresents trade data, and undermines a key strategic partnership in the Indo-Pacific,” Srivastava said. Global Trade Research Initiative (GTRI) is a research Group focused on Climate Change, technology and trade.
GTRI said India does not export crude oil–Russian or otherwise.
“India is a net importer of crude oil, and its global exports of crude stand at zero. What India does export are refined petroleum products including from Russian oil, such as diesel and jet fuel, after processing crude oil in its refineries–just like many other energy-importing countries. Second, China–not India–is the largest buyer of Russian oil. In 2024, China imported $62.6 billion worth of Russian oil, compared to India’s $52.7 billion. But Mr. Trump appears unwilling to criticize China, perhaps because of geopolitical calculations, and instead targets India unfairly,” Srivastava said.
He said India’s oil trade with Russia has taken place with full transparency and broad understanding with the United States.
“One of the key reasons India stepped up Russian oil purchases was to help stabilize global oil markets after Western sanctions disrupted traditional supply chains. By maintaining diversified and affordable energy access, India contributed to preventing a global oil price shock,” he said.
Trump’s announcement, made on his social media platform Truth Social, came days after he announced 25 per cent reciprocal tariff on India and an unspecified penalty for importing oil from Russia.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA. Thank you for your attention to this matter!!!” the US President said in the post.
Srivastava said India’s oil refineries–comprising both government-owned and private-sector entities–operate independently when it comes to sourcing crude oil and do not require government approval to buy from Russia or any other country.
Their purchase decisions are guided by commercial considerations, such as price, supply stability, and export market regulations,” he said.
The GTRI Founder said that if refiners assess that the risks of importing Russian crude–such as secondary sanctions or loss of access to key export destinations–outweigh the cost advantages of discounted oil, they may choose to reduce or stop such purchases on their own.
“For instance, while India exported diesel and aviation turbine fuel (ATF) to the EU in FY2025, these exports will now cease due to the EU’s ban on products refined from Russian crude. In such scenarios, Indian refiners will naturally shift away from Russian oil without waiting for any government directive,” he said
Srivastava said that in May 2025, India’s imports from Russia has reduced by 9.8% to $9.2 billion compared to May 2024 purchase.
India has defended its sovereign right to conduct energy policy based on national interest.
The government has clarified that India’s energy purchases are guided by market dynamics and national interests.
“You are aware of our broad approach to energy sourcing requirements, that we look at what is available in the market and the prevailing global situation. We are not aware of any specifics,” MEA Spokesperson Randhir Jaiswal said last week answering queries on Trump’s announcement of penalty for purchasing Russian oil.
Answering another query, Jaiswal said India’s relations with any country are based on their own merit and shouldn’t be viewed through the lens of third countries.
“Our ties with any country stand on their merit and should not be seen from the prism of a third country. As far as India-Russia relations are concerned, we have a steady and time-tested partnership,” he added.
Trump announced the imposition of 25 per cent tariffs on Indian goods and a penalty for importing Russian oil in the last week of July , even as there were hopes of an interim India-US trade that would have otherwise helped avoid elevated tariffs.
There are apprehensions that global crude prices could jump to USD 200 a barrel if India were to stop buying Russian oil and this will severely harm consumers. (ANI)
