'India prevented a global crisis... If India stopped buying, crude could hit $200...': Sources
According to the sources, India’s imports have stabilised global markets and helped keep fuel prices manageable for consumers worldwide, rather than financially supporting Russia. Something what the US has alleged.
- Aug 30, 2025,
- Updated Aug 30, 2025 1:57 PM IST
Crude prices worldwide could triple to $200 a barrel, if India stopped buying Russian oil. “India prevented a global crisis. If India stopped buying, crude could hit $200 a barrel,” sources close to the developments said, defending the country’s continued purchase of Russian oil. India, the world’s third-largest oil importer, increased Russian crude purchases after the Ukraine war, saving over $17 billion since 2022, as per Reuters estimates.
According to the sources, India’s imports have stabilised global markets and helped keep fuel prices manageable for consumers worldwide, rather than financially supporting Russia. The move has drawn praise from international figures, including US Treasury Secretary Janet Yellen.
Earlier this week, Peter Navarro, White House adviser and senior aide to former President Donald Trump, claimed that the Ukraine conflict was effectively “Modi’s war,” alleging that India was supporting Russia through discounted oil purchases. In an interview with Bloomberg, Navarro suggested that India could immediately receive a 25% reduction in US tariffs if it stopped buying Russian oil.
Navarro further emphasized India’s potential role in peace efforts, stating, “The path to peace in Ukraine runs, in part, through New Delhi. I mean, it is essentially Modi’s war because the road to peace runs, in part, through New Delhi.”
Sources said contrary to circulating claims, Indian refiners do not use US dollars for Russian oil. “Purchases are routed through traders in third countries and settled in currencies like AED. At no point did the US government ask India to stop buying. India’s trade is fully legitimate and within G7 and EU price-cap rules,” sources said.
In the aftermath of the Russia-Ukraine war, India was encouraged by the West to buy Russian crude, as removing the second largest producer with 10% of global production from the international market would have resulted in crude going to $200/barrel.
On black-market oil
Speculation that India is dealing in black-market oil was also refuted. “Russian oil is not sanctioned like Iranian or Venezuelan oil. It is sold under a price-cap system designed by the West to prevent profiteering. If the US wanted to ban Russian oil, it would have sanctioned it. It did not because it needs Russian oil in the market,” the sources added.
Reports suggesting India ramped up imports to profit from the crisis were dismissed. “India cut fuel prices for its citizens even as global oil prices spiked to $137 a barrel. State-run oil firms took losses of Rs 21,000 crore, while the government taxed exports to prevent profiteering. India’s imports prevented a global spike and cushioned inflation for everyone,” the sources said.
Dealing with Russian oil
Allegations that India has become a laundering hub for Russian oil were also rejected. “India has been the world’s 4th-largest refiner for decades. Refining crude and exporting fuels is how the global system works. After banning Russian crude, Europe itself relied on Indian diesel and jet fuel. That is stabilisation, not laundering,” the sources emphasized.
On whether refiners are sending profits abroad, the sources clarified, “About 70% of refined fuels stay in India to meet domestic demand. One Reliance refinery is export-focused since 2006, long before this war. Exports of refined fuels have actually declined as domestic use has risen. Crude and products are fungible, they follow market flows.”
India and US exporters
Responding to claims that India is punishing US exporters with tariffs while funding Russia, sources said, “The trade deficit argument is hollow. India imports billions in US aircraft, LNG, defence equipment, and technology.” Similarly, on defense cooperation, they added, “India is co-producing jet engines with GE, buying MQ-9 drones, and deepening QUAD and Indo-Pacific defence ties. India is the only major power actively countering China militarily in Asia. That is a direct strategic gain for the US”
On the road to peace in Ukraine, the sources stated, “Peace cannot come from scapegoating. India has called for diplomacy at the UN. Meanwhile, Europe still buys Russian gas and the US still imports Russian uranium. India acted responsibly, followed global frameworks, and prevented prices from spiralling.”
Summing up India’s position, the sources said, “India did not bankroll Russia. India kept markets stable, fuel affordable, and inflation under control for itself and for the world. Scapegoating India may serve politics, but it does not serve facts.”
Crude prices worldwide could triple to $200 a barrel, if India stopped buying Russian oil. “India prevented a global crisis. If India stopped buying, crude could hit $200 a barrel,” sources close to the developments said, defending the country’s continued purchase of Russian oil. India, the world’s third-largest oil importer, increased Russian crude purchases after the Ukraine war, saving over $17 billion since 2022, as per Reuters estimates.
According to the sources, India’s imports have stabilised global markets and helped keep fuel prices manageable for consumers worldwide, rather than financially supporting Russia. The move has drawn praise from international figures, including US Treasury Secretary Janet Yellen.
Earlier this week, Peter Navarro, White House adviser and senior aide to former President Donald Trump, claimed that the Ukraine conflict was effectively “Modi’s war,” alleging that India was supporting Russia through discounted oil purchases. In an interview with Bloomberg, Navarro suggested that India could immediately receive a 25% reduction in US tariffs if it stopped buying Russian oil.
Navarro further emphasized India’s potential role in peace efforts, stating, “The path to peace in Ukraine runs, in part, through New Delhi. I mean, it is essentially Modi’s war because the road to peace runs, in part, through New Delhi.”
Sources said contrary to circulating claims, Indian refiners do not use US dollars for Russian oil. “Purchases are routed through traders in third countries and settled in currencies like AED. At no point did the US government ask India to stop buying. India’s trade is fully legitimate and within G7 and EU price-cap rules,” sources said.
In the aftermath of the Russia-Ukraine war, India was encouraged by the West to buy Russian crude, as removing the second largest producer with 10% of global production from the international market would have resulted in crude going to $200/barrel.
On black-market oil
Speculation that India is dealing in black-market oil was also refuted. “Russian oil is not sanctioned like Iranian or Venezuelan oil. It is sold under a price-cap system designed by the West to prevent profiteering. If the US wanted to ban Russian oil, it would have sanctioned it. It did not because it needs Russian oil in the market,” the sources added.
Reports suggesting India ramped up imports to profit from the crisis were dismissed. “India cut fuel prices for its citizens even as global oil prices spiked to $137 a barrel. State-run oil firms took losses of Rs 21,000 crore, while the government taxed exports to prevent profiteering. India’s imports prevented a global spike and cushioned inflation for everyone,” the sources said.
Dealing with Russian oil
Allegations that India has become a laundering hub for Russian oil were also rejected. “India has been the world’s 4th-largest refiner for decades. Refining crude and exporting fuels is how the global system works. After banning Russian crude, Europe itself relied on Indian diesel and jet fuel. That is stabilisation, not laundering,” the sources emphasized.
On whether refiners are sending profits abroad, the sources clarified, “About 70% of refined fuels stay in India to meet domestic demand. One Reliance refinery is export-focused since 2006, long before this war. Exports of refined fuels have actually declined as domestic use has risen. Crude and products are fungible, they follow market flows.”
India and US exporters
Responding to claims that India is punishing US exporters with tariffs while funding Russia, sources said, “The trade deficit argument is hollow. India imports billions in US aircraft, LNG, defence equipment, and technology.” Similarly, on defense cooperation, they added, “India is co-producing jet engines with GE, buying MQ-9 drones, and deepening QUAD and Indo-Pacific defence ties. India is the only major power actively countering China militarily in Asia. That is a direct strategic gain for the US”
On the road to peace in Ukraine, the sources stated, “Peace cannot come from scapegoating. India has called for diplomacy at the UN. Meanwhile, Europe still buys Russian gas and the US still imports Russian uranium. India acted responsibly, followed global frameworks, and prevented prices from spiralling.”
Summing up India’s position, the sources said, “India did not bankroll Russia. India kept markets stable, fuel affordable, and inflation under control for itself and for the world. Scapegoating India may serve politics, but it does not serve facts.”