Fueling the Future: Why India Chooses Russia Over the West

India’s Russian oil deal saves billions but strains US–EU ties. Discover how this energy strategy could reshape global power in 2025.

Why Is India Buying Oil from Russia in 2025?

A symbolic image of the India-Russia trade relationship, showing two oil tankers, one for each country, docked at a port with two silhouetted figures shaking hands in the background.

1. 🇮🇳 India-Russia Oil Deal 2025: A Strategic Economic Win

India has become one of the largest importers of Russian crude oil since 2022. In 2025, this partnership is stronger than ever — with India importing over 40% of its crude oil from Russia, often at 30% below global market prices.

• This has helped control inflation,
• Reduce dependence on Middle Eastern oil,
• And save billions in foreign exchange.

2. 💱 Rupee-Ruble Trade: Reducing Dollar Dependency

India and Russia have also bypassed the US dollar for many transactions, using rupee-ruble trade agreements to strengthen local currencies and avoid sanctions.
This has given India more financial flexibility and global independence.

🇺🇸 Why the US Is Threatening Tariffs on India

As India strengthens its economic ties with Russia through discounted oil imports, the United States is growing increasingly uncomfortable.
Despite being strategic partners in forums like QUAD and Indo-Pacific security alliances, the India-US relationship in 2025 is facing turbulence — all because of oil and diplomacy.

But why exactly is the US threatening India with tariffs?
Let’s break it down.

⚠️ 1. Undermining Western Sanctions on Russia

The US and European Union have imposed strict economic sanctions on Russia following its invasion of Ukraine. These sanctions are designed to cut off Russia’s funding — especially through oil and gas exports.

However, India has become Russia’s second-largest buyer of crude oil.
This move directly weakens the impact of US sanctions, allowing Russia to keep its economy afloat.

💸 2. America Sees India as a Trade Competitor, Not Just an Ally

The US views India’s growing economic independence — especially its rupee-ruble oil trade and discounted energy deals with Russia — as a competitive threat to American global trade interests.

Instead of supporting Western narratives, India is:

• Buying cheap Russian oil,
• Maintaining trade relations with sanctioned countries,
• Avoiding overdependence on the US dollar,

… which sends a signal that India is choosing national interest over Western pressure.

🧾 3. Section 301 & Tariff Threats: Trump’s Economic Warning

In August-2025, former President Donald Trump issued a strong statement calling for a 25% tariff on Indian goods, citing “India’s failure to support global sanctions.”

The Section 301 of the US Trade Act gives Washington power to impose tariffs on countries engaging in what it sees as unfair trade practices or policies that harm US interests.

This could impact key Indian export sectors like:

✅ Pharmaceuticals

✅ Textiles & Garments

✅ Information Technology (IT)

✅ Steel and Industrial Equipment

“As per IndiaTimes analysis, a 25% US tariff could add $9–11B to India’s oil bill.”
→ “IndiaTimes analysis”

“As per IndiaTimes analysis, a 25% US tariff could add $9–11B to India’s oil bill.”
→ “IndiaTimes analysis” link:
https://indiatimes.com/trending/donald-trump-warns-india-on-massive-russian-oil-buys-signals-substantial-tariff-hike-what-could-that-mean-for-trade-665883.html

🤝 India’s Response: Diplomacy, Not Dependency

India has responded firmly but diplomatically, stating that:

“Our energy purchases are based on national interest. We follow international laws and sovereign decisions.”

India is confident that its growing global influence, large consumer base, and strategic geography make it too important for the US to alienate completely.

The US tariff threat on India in 2025 is not just about oil — it’s about power, influence, and control in a changing world order.

As India asserts its strategic autonomy, the US must decide whether to punish a friend — or adapt to the rise of a new global power.

Why the European Union Is Also Concerned

While most eyes are on the US-India trade tensions, another major global player is quietly growing uneasy — the European Union (EU).

Ever since the Russia-Ukraine war, the EU has led a strict sanctions regime against Russia — cutting energy ties, freezing Russian assets, and pushing for global isolation of Putin’s government. But India’s growing partnership with Russia — especially in the discounted crude oil trade — is undermining that mission.

A group of European Union officials in a formal meeting, looking concerned. They are seated around a conference table with laptops and documents, and an EU flag and the French flag are visible in the background. A screen at the front of the room displays a map and data.

🛢️ 1. Undermining the Sanctions Framework

The EU believes that India’s massive oil imports from Russia — often refined and re-exported to Europe itself — are creating loopholes in their own sanctions. While India is not breaking any international law, it is profiting from the Western embargo while maintaining “neutrality.”

🧠 Did you know?
In 2025, India became Russia’s #1 oil buyer, with purchases crossing 2 million barrels per day, most of it heavily discounted.

🧨 2. Diplomatic Double Standards?

European leaders privately express concern that India is “playing both sides” — engaging deeply with Western allies like France, Germany, and the UK, while simultaneously funding the Russian economy via energy deals.

This has led to diplomatic friction during global forums like G20, where EU officials have pushed for more unified condemnation of Russia, but India has resisted — focusing on peace without alienating Moscow.

📉 3. Trade Tensions May Rise

Some EU nations are now pushing for a rethink of trade incentives and technology cooperation with India. While no official sanctions or tariffs have been imposed (unlike the US), there’s increasing chatter in Brussels about using economic tools to “encourage” India to reduce dependency on Russian energy.

🌍 4. Energy Transition Hypocrisy?

India has also flipped the narrative by calling out the West’s “energy hypocrisy.”
While EU countries are buying refined products made from Russian oil via third parties, they still criticize India for buying it directly.

This has sparked global debates around the ethics of energy security vs political alliances, with India defending its stand as a Global South leader looking after its citizen-first

👉 Also Read: “Digital Colonization: Are Big Tech Companies the New Global Rulers?”
https://vikashblog.me/digital-colonization-are-big-tech-companies-the-new-global-rulers/

The European Union’s concern over India-Russia oil ties goes beyond economics — it’s about global influence, alliances, and the future of multipolar power.
As India asserts its strategic autonomy, both the US and EU are realizing that the world’s largest democracy isn’t choosing sides — it’s choosing what’s best for India.

🧠 India’s Response: National Interest Comes First

For New Delhi, the India-Russia oil trade in 2025 isn’t just about cheap crude — it’s about strategic autonomy, economic stability, and geopolitical balance.
While the US and EU frame this as a moral and diplomatic conflict, India views it as a non-negotiable necessity for its national interest.

1. Energy Security Over Political Pressure

India is the third-largest energy consumer in the world and imports over 85% of its crude oil.
With global energy prices skyrocketing post-Ukraine war, discounted Russian crude has been a lifeline for keeping domestic fuel prices stable, controlling inflation, and ensuring the economy keeps running.

• Discounts of up to 30% below market prices
• Long-term supply contracts reducing uncertainty
• Lower fuel prices benefiting industries and common citizens

💱 2. Rupee-Ruble Trade: Bypassing the Dollar

One of the most strategic moves in the India-Russia oil partnership has been local currency trade — payments in Indian Rupees and Russian Rubles instead of US dollars.

• This protects India from currency volatility
• Reduces reliance on the US-led financial system
• Strengthens bilateral economic ties with Russia

🗣️ 3. India’s Diplomatic Stand: “Our Citizens Come First”

At multiple global platforms like the G20 Summit and BRICS meetings, Indian officials have made it clear:

“We will always act in the best interest of our citizens. Our energy security cannot be compromised due to geopolitical conflicts we are not a part of.”

This statement underscores India’s balanced foreign policy — working with the West for trade and technology, while keeping Russia as a strategic energy partner.

🤝 4. Non-Aligned but Not Neutral

India’s approach is often described as “strategic non-alignment” — not siding exclusively with any one bloc but maintaining strong relationships with multiple powers.

• With the US & EU: Trade, tech, and defense cooperation
• With Russia: Energy, defense, and space partnerships
• With Global South: Advocacy for fairer trade and energy access

🔮 5. The Long-Term Vision

India’s oil strategy is not just about today’s discounts — it’s about future energy independence.

• Developing refining capacity to re-export petroleum products
• Investing in renewables while securing fossil fuel reserves
• Expanding strategic petroleum reserves to avoid supply shocks

By 2030, India aims to be a global energy hub — trading, refining, and exporting fuel while leading in clean energy initiatives.

✍️ Conclusion: India Won’t Bow to Pressure

In the high-stakes chessboard of global energy diplomacy, India has made it clear — it will not sacrifice its economic stability or strategic autonomy to appease any foreign power, whether it’s the United States, the European Union, or any other global bloc.

💡 The Core Message: Sovereignty Over Sanctions

The India-Russia oil partnership in 2025 is more than a trade deal — it’s a declaration of sovereignty in foreign policy.
While the West frames the issue through the lens of morality and geopolitics, New Delhi views it through the lens of its people — affordable fuel, stable inflation, and uninterrupted growth.

• Discounted Russian crude saves India billions of dollars annually
• Rupee-ruble trade reduces dependency on the US dollar
• Strategic petroleum reserves ensure long-term security

By prioritizing energy security, India is setting a precedent for other Global South nations — proving that national interest must come before external pressure.

“According to The Guardian, India’s oil imports from Russia in 2025 reached record highs.”
→ “The Guardian”  link 
https://www.theguardian.com/world/2025/aug/02/india-buy-oil-russia-despite-trump-tariff-threats

🌍 The Multipolar Reality

We are living in a multipolar world order, where power is no longer concentrated in the hands of a few.
India’s ability to maintain strong ties with both Washington and Moscow, while simultaneously engaging with Beijing, Brussels, and BRICS nations, makes it a key swing state in global geopolitics.

This balance is not neutrality — it’s strategic non-alignment.
It allows India to negotiate better trade deals, secure defense partnerships, and shape the global conversation on its own terms.

🔮 Looking Ahead: India’s Rising Influence

As the US threatens tariffs and the EU voices concern, India is quietly expanding its influence:

• Becoming a major refining hub that exports petroleum products globally
• Attracting foreign investment in renewables while securing fossil fuel supply lines
• Using its 1.4 billion-strong market as leverage in global trade talks

By 2030, India is poised to be one of the top three global economies — and its current energy strategy is a big reason why.

The world is changing — and India is no longer a passive participant.
It is a confident, assertive nation that makes decisions based on its own needs, not on pressure from global powers.

India’s stance in 2025 can be summed up in one sentence:
“Partnerships are welcome, but compromises on sovereignty are not.”

✍️ Written by Vikash Singh
Blogger | Writer