India reiterates energy security priority amid US tariff rollback on Russian oil trade 

India on February 7 clarified its position on the purchase of Russian oil, stressing that safeguarding the country’s energy requirements remains New Delhi’s foremost priority. The statement came a day after the United States revoked the punitive 25 per cent tariffs imposed on India over its oil trade with Moscow, following the conclusion of a bilateral India-US trade agreement. 

Addressing the issue, Ministry of External Affairs spokesperson Randhir Jaiswal reiterated that energy security for India’s population of 1.4 billion remains the guiding principle behind the government’s decisions. 

“Regarding India's energy sourcing, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government,” Jaiswal said. 

Diversification at the core of India’s energy strategy 

The MEA underlined that diversification of energy sources, aligned with market realities and shifting global dynamics, continues to be central to India’s approach. Officials said decisions taken by India’s energy sector are guided by this overarching framework rather than external pressures. 

“Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this,” Jaiswal said, adding that “All of India's actions are taken and will be taken with this in mind.” 

India has significantly ramped up purchases of discounted Russian crude since the outbreak of the Ukraine war, citing affordability and supply stability, even as Western nations sought to curb Moscow’s energy revenues through sanctions. 

Criticism from experts 

The US decision to link tariff relief to India’s oil imports drew sharp criticism from former Foreign Secretary Kanwal Sibal, who described Washington’s approach as coercive. 

“This is plain arm twisting. Our oil purchases from Russia have nothing to do with a bilateral trade deal with the US. This is a political issue, to be negotiated politically and not through tariffs. Our purchases of Russian oil is not a threat to US security and foreign policy. On the contrary, US upgrading Pakistan F 16’s threatens India’s security and foreign policy. The US adopting double standards with regard to Chinese far greater purchases of Russian oil and gas and giving preferential treatment to China threatens India’s security and foreign policy, given China’s hostility towards India. Why is it that China’s purchases of Russian oil and gas do not threaten US’s security and foreign policy? That the US will monitor if India resumes buying Russian oil directly or indirectly and threatens to reimpose 25% penalty tariffs and other unspecified punishment if India does is disrespectful of India and shows it is not seen as an equal relationship,” Sibal wrote in a post on X (formally twitter). 

Strategic analyst Brahma Chellaney also warned of long-term implications embedded in the US executive order signed by President Donald Trump. 

“The real sting in Trump’s executive order on Russian oil lies in its monitoring mandate. It formally tasks the commerce secretary with tracking Indian oil imports and creates a clear trigger: a finding that India has resumed “directly or indirectly” importing Russian oil could snap the 25% punitive tariff back into place. The word “indirectly” is a loaded one. It opens the door to penalizing Indian refined fuels — diesel, jet fuel and other products — sold to Europe or the US if Washington deems them to have originated from Russian crude. Replacing discounted Russian Urals crude with market-priced U.S. oil — made costlier still by longer transport distances — is estimated to add up to $4 billion a year to India’s oil import bill. Washington’s intent is unmistakable: to tether India’s energy security to a more expensive and geographically distant supplier, the US,” Chellaney wrote. 

In a subsequent post, Chellaney described the situation as a strategic bind for New Delhi. “The Sword of Damocles.” By releasing the executive order while New Delhi remains silent on Russian oil, Trump has deliberately boxed India in. Reject the claimed “commitment” to stop buying Russian oil, and punitive tariffs snap back. Accept it, and India risks a strategic rupture with Russia, its key defense partner.” 

Imports dip in January 

Notably, the executive order does not spell out any definitive thresholds, merely stating that India had “committed to stop” direct or indirect imports of Russian oil. Market data, however, suggests a sharp pullback. 

According to S&P Global Energy, India cut Russian crude imports by nearly 70 per cent month-on-month in January to about 436,000 barrels per day, while ramping up purchases from the Middle East, West Africa and the United States.