India resumes Russian oil imports despite US tariffs, Bloomberg reports
India's state-owned refiners have resumed purchases of Russian oil after a brief pause triggered by U.S. tariffs, Bloomberg reported on Aug. 20.
The suspension followed a 25% tariff imposed by U.S. President Donald Trump on Aug. 6 over India's continued imports of Russian oil. The tariff is expected to come into effect on Aug. 27 and follows Trump's decision to impose a separate 25% tariff on all imports from India that took effect on Aug. 1.
Despite the pressure, Indian Oil Corp. and Bharat Petroleum Corp. bought several shipments of Russian Urals crude in recent days, with deliveries expected in September and October, according to Bloomberg. Earlier this month, the companies had suspended purchases for those months under U.S. pressure.
Since Russia's full-scale invasion of Ukraine in 2022, India has emerged as one of Moscow's largest oil buyers. Imports of Russian crude have risen more than 20-fold to over 2 million barrels per day.
The United States has accused India of exploiting the situation.
Treasury Secretary Scott Bessent on Aug. 19 called the practice "unacceptable." Washington has warned that continued purchases could lead to tariffs of up to 100% on Indian exports to the U.S.
China has also expanded its role as a leading buyer of Russian oil.
Bloomberg reported on Aug. 19 that Beijing has ramped up purchases amid Trump's threats of tariffs, with imports of Urals crude from the Baltic and Black Sea doubling in August to nearly 75,000 barrels per day.
Trump had threatened penalties if Moscow did not agree to a ceasefire, giving Russia 10 days on July 29 to halt its war or face secondary tariffs. The deadline has since passed, but Washington has not yet imposed any additional measures.
U.S. officials have warned that countries like China could face tariffs of up to 100% on their exports to the U.S. if they continue buying Russian oil.
Oil revenues account for roughly one-third of Russia's federal budget, making energy exports a vital source of funding for its war against Ukraine.
