Manish Vaid
India, the world’s third-largest oil consumer, finds itself in the eye of a geopolitical tempest. As the administration of US President Donald Trump calls on New Delhi to increase imports of oil and gas, it also escalates pressure to sever Russian oil imports. Moscow, meanwhile, stands like a forest around India, condemning Washington’s coercive tactics.
The issue for India is to balance immediate economic needs with long-term geopolitical resilience.
Washington has deployed a broad spectrum of pressure tactics to influence India’s energy and defence policies, especially regarding Russian oil imports. In early 2025, the outgoing administration of US President Joe Biden announced sanctions targeting major Russian oil producers such as Gazprom Neft and Surgutneftegas, along with 183 oil tankers, crippling supply chains and disrupting the financial operations of Indian companies. The US had set a 27 February deadline for India to comply.
Consequently, India’s crude oil imports from Russia plunged by nearly 25% in February, driven by mounting sanctions. According to data from energy cargo tracker Vortexa, Russian ports loaded an average of 1.07 million barrels per day (bpd) for India from February 1-20, down from 1.4 million bpd in January.
During the same period, US oil shipments to India surged, with crude loadings rising to 0.2 million bpd, nearly doubling from 0.11 million bpd the previous month. This sharp increase aligns with India’s pledge to boost American energy purchases to $25 billion, reflecting a strategic recalibration in response to geopolitical pressures.
Starting April 2, Trump announced reciprocal tariffs targeting countries such as India, which has higher tariffs on US goods. This could hit India’s export sectors hard, with potential annual losses of $7 billion. The tariff gap is stark. India’s average rate is 17%, while the US charges just 3.3%, intensifying pressure to recalibrate trade ties. Meanwhile, defence ties are strained under threats to delay military equipment deliveries.
US has long wielded sanctions as foreign policy tools. So far, India has not been easily cowed. Its relationship with Russia is not transactional but foundational, reflecting a careful balancing act. The storm may be fierce, but India’s roots run deep, grounded in strategic autonomy and economic resilience.
Russia anchoring India's energy resilience
Last week, Moscow condemned the US pressure on India, suggesting that its demand that India stop unloading Russian oil tankers is “inappropriate and counter-productive.” These remarks are not just rhetoric but reflect a strategic partnership deeply intertwined with India’s energy and economic stability.
Beyond oil, Russia remains India’s largest defence supplier and a critical player in its energy diversification strategy. Rosatom’s recent offer to transfer technology for small modular reactors aligns with India’s push for sustainable energy independence, showcasing the breadth of their energy ties beyond crude.
Yet, the oil connection remains paramount. Despite the sanctions, Russia continues to offer discounted crude and shorter delivery routes, a lifeline for India’s energy security. Severing these imports would not only trigger price volatility but weaken India’s long-standing strategic alignment with Moscow, a risk New Delhi cannot take lightly.
Meanwhile, the US walks a tightrope of its own.
While pressuring India to cut Russian oil imports, Washington has pursued resource diplomacy elsewhere – including the initially-failed negotiations with Ukraine over critical minerals, which seem to have the potential to be revived. This highlights the transactional nature of American foreign policy, in stark contrast to Russia’s more enduring strategic approach with India.
For New Delhi, the choice is not binary. India’s partnership with Russia serves as an anchor, stabilizing its energy supply and providing leverage in navigating US demands. Even as India broadens its oil basket, its relationship with Moscow remains a crucial part of its multi-alignment strategy, allowing it to bend without breaking in the face of geopolitical storms.
Walking India's strategic tightrope
With 87% of India’s crude needs met through imports, projected to rise to 89% by the end of the year, abandoning discounted Russian oil overnight would expose India to severe energy insecurity and inflationary shocks.
In 2023 alone, Russian discounts saved India nearly $5 billion, cushioning the economy amid global volatility. Yet openly defying Washington risks potential economic retaliation, jeopardizing over $190 billion in bilateral trade and access to critical technologies.
Rather than choosing sides, India is expanding its energy basket, sourcing oil from 39 countries (up from 29), including Iraq, Nigeria, and the US, where shipments nearly doubled to 0.2 million bpd in early 2025. But as Petroleum Minister Hardeep Singh Puri stated, American oil comes at market prices with no strategic discounts, unlike Russia’s cheaper barrels and faster delivery routes. Russia, in this context, remains the anchor stabilizing India’s energy security amid turbulent geopolitical tides.
India’s strategy reflects its commitment to multi-alignment diplomacy. Through quiet backchannel negotiations, New Delhi could offer tactical concessions, such as capping Russian oil imports or accelerating green energy collaborations, to defuse US pressure without severing ties with Moscow.
Simultaneously, India can leverage the G20 platform to champion energy sovereignty for the Global South, framing affordable access to energy as a development necessity, not a geopolitical bargaining chip. In this evolving energy landscape, India doesn’t just drift with the storm, it steers through it. With flexible branches that adapt to shifting winds and deep roots grounded in long-term partnerships, New Delhi aims to secure its future without losing its autonomy.
Manish Vaid is a Junior Fellow at the Observer Research Foundation with research interests in strategic energy insights and green transitions. This article was originally published at https://www.rt.com/