Since the start of the Russia-Ukraine war in 2022, India has been buying more crude oil from Russia. This move has created tension with the United States, especially after US President Donald Trump announced an additional 25% tariff on Indian imports linked to Russian oil.
According to a report by the Centre for Research on Energy and Clean Air (CREA) in Finland:
- India has bought ₹132 billion ($13.39 lakh crore) worth of Russian oil since early 2022.
- This is about 20% of Russia’s total oil export earnings (₹640 billion) during the war period.
- Russia’s oil is still available in global markets at cheaper rates, despite Western criticism.
US Criticism
The US claims that India and some wealthy Indian families are making “unfair profits” of around $16 billion through cheap Russian oil. However, how this figure was calculated is still unclear.
The new 25% tariff will come into effect on August 27, 2025. India has opposed this penalty, calling it unfair, and said its refiners will continue importing Russian oil.
India’s Other Purchases
Apart from oil, India also bought ₹16 billion worth of Russian coal, taking its total fossil fuel imports from Russia to ₹148 billion.
Comparison With Other Countries
- China: Biggest buyer of Russian fossil fuels (₹268 billion)
- Oil: ₹193 billion
- Coal: ₹39 billion
- Gas: ₹36 billion
- European Union (EU): ₹213 billion (mainly gas worth ₹105 billion)
- India: ₹148 billion (oil + coal, but no gas imports)
- Turkiye: ₹111 billion
Even though Western nations often criticize India and China, the report shows that the EU itself accounts for one-fourth of Russia’s fossil fuel income since the war began.
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CREA’s View
CREA believes Russia is still earning big from oil, gas, and coal despite sanctions. It suggests that stronger restrictions and stricter enforcement of oil price caps are needed to reduce Moscow’s income.
