India reluctantly cuts Russian oil imports as additional US tariffs take effect, Bloomberg reports
Editor's note: This article has been updated to reflect that an additional 25% tariff issued by the United States took effect on Aug. 27.
Indian refineries are preparing to modestly reduce Russian crude purchases in the coming weeks amid mounting U.S. trade pressure, Bloomberg reported on Aug. 26.
Since Russia's full-scale invasion began in 2022, India has dramatically expanded its imports of Russian oil. The country now accounts for 37% of Moscow's total petroleum exports, providing a critical revenue stream that helps finance military operations in Ukraine.
State-owned and private processors, including energy giant Reliance Industries, plan to trim daily purchases to 1.4-1.6 million barrels from the current 1.8 million barrels, Bloomberg wrote, citing undisclosed industry sources.
According to the news outlet, the modest reduction represents more of a token gesture to Washington, signaling India's reluctance to sever economic ties with Moscow.
The move comes as an additional 25% U.S. tariff took effect overnight on Aug. 27, doubling the tariffs on Indian imports to 50%. These tariff measures could prove temporary, as reaching a trade deal between the U.S. and India might ease pressure and restore previous duty rates, sources told Bloomberg.
The Trump administration has publicly criticized New Delhi for the dramatic surge in Russian purchases since 2022.
U.S. officials have targeted India's refining sector, accusing the country of bankrolling Russian aggression through oil deals.
U.S. President Donald Trump announced a 25% tariff on India starting Aug. 1, prompting Indian state refineries to quickly halt Russian oil purchases. On Aug. 6, Trump signed an executive order imposing an additional 25% duty on Indian goods, effective Aug. 27, if the country continues buying Moscow's oil.
This forced Indian refineries to seek alternative supply sources with the U.S., Brazil, and Middle Eastern producers, fearing further U.S. measures before Trump's meeting with Russian President Vladimir Putin in Alaska.
India's state refiners reportedly resumed Russian oil purchases immediately after the summit.
Despite the ongoing war in Ukraine, Washington has yet to impose promised additional trade measures on Russian oil exports.
Trump previously issued Moscow an ultimatum on July 29, demanding an end to the war within 10 days under threat of secondary tariffs, but no new sanctions materialized after the deadline passed.
