Amid rising global scrutiny over India’s energy ties with Russia, the country is standing firm on its oil import strategy, citing national interest and market dynamics. As India and the US struggle to find common ground on tariffs and to seal an interim trade deal, the debate has shifted to a new flashpoint — who is trading more with Russia – India, the US, or the European Union?
Amid mounting pressure from the United States and the European Union, Indian officials have hit back, claiming that the EU trades more with Russia than India does — and that the US also continues to engage in trade with Moscow. Here’s a look at the trade and economic relations between Russia and the three countries.
How much is the trade between India and Russia?
According to media reports, India’s crude oil import mix from Russia skyrocketed from a mere 0.2 per cent before the Ukraine war to about 35–40 per cent by mid‑2025, making Russia India’s largest oil supplier.
Bilateral trade between India and Russia touched a record high of $68.7 billion in the financial year 2024–25, and the two countries are currently working towards a bilateral trade target of $100 billion by 2030. India is the second-largest purchaser of Russian crude oil.
Trump targets India over Russian oil, threatens more tariffs
US President Donald Trump has been threatening India with further tariff hikes and secondary sanctions since August 4, following the 25 per cent tariff imposed on July 30. He justified the move by accusing India of maintaining high trade barriers and expanding its energy ties with Russia after the Ukraine war, while showing indifference to Ukrainian casualties.
On Truth Social, Trump criticised India for buying “massive amounts” of Russian oil and allegedly reselling it “on the open market for big profits.”
India has pushed back strongly against criticism from the United States and European Union over its continued import of Russian oil. Indian officials pointed out that such imports are not just justified but necessary to maintain stable energy prices for Indian consumers.
Here is why India is trading with Russia
1. India started buying after Europe diverted supplies
India clarified that it only started increasing oil imports from Russia after traditional suppliers shifted their barrels to Europe when the Ukraine conflict broke out.
“The United States at that time actively encouraged such imports by India for strengthening global energy markets’ stability,” an official statement said, referring to the initial months of the Ukraine war.
2. India says affordable oil is a necessity, not a choice
Indian officials, in a press statement released on August 4, said India’s energy policy is driven by national interest. Buying affordable oil ensures predictable fuel costs for its large population.
“They are a necessity compelled by the global market situation. However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia.”
3. ‘Higher than India’s total trade’: India slams West’s hypocrisy
India hit back, saying that the nations criticising it — the US and the European Union — have themselves been trading with Russia.
“The United States continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers, as well as chemicals,” the statement noted.
Indian officials highlighted that the European Union, comprising 27 countries, continues to trade with Russia — not just in energy, but also in fertilizers, mining products, chemicals, iron and steel, machinery, and transport equipment.
EU trade with Russia
In 2024, the EU recorded goods trade worth Euro 67.5 billion with Russia, along with Euro 17.2 billion in services (2023 data). In fact, the EU’s LNG imports from Russia touched a record 16.5 million tonnes in 2024, higher than the previous record of 15.21 million tonnes in 2022. “These numbers are far higher than India’s total trade with Russia,” the statement said.
According to EU Trade portal, Russia has a trade surplus EU’s export at €31.5 billion from and import worth €35.9 billion
The EU’s imports are dominated by fuel and mining products – especially mineral fuels (€22.3 billion, 62.1%), manufactured products, such as chemicals (€2.8 billion, 7.8%) and iron and steel (€2.6 billion, 7.2%).
India won’t compromise on national interest
In this context, India termed the global criticism “unjustified and unreasonable.” The government reiterated that it will continue to make independent economic decisions based on national interest.
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” said the official statement.