Reducing Russian crude imports: India wants US to allow oil from Iran, Venezuela; 25% penal tariffs in focus
India, faced with 25% additional penal tariffs for its crude trade with Russia, has reportedly asked the US to allow oil imports from Iran and Venezuela.Following international sanctions due to the Ukraine conflict, Russia began offering its oil at reduced prices. With India importing nearly 90% of its oil requirements, the cost-effective Russian supplies have helped reduce its import expenses. Similar price advantages could be available from Iranian and Venezuelan supplies.According to a Bloomberg report, Indian officials, during their US visit this week, reiterated their stance to the Trump administration regarding oil imports. They suggested that any substantial decrease in Russian oil purchases by Indian refiners would necessitate Washington’s approval for crude imports from Iran and Venezuela, both currently under sanctions, the report said.During the discussions with Trump officials, the visiting delegation underscored their position, a source was quoted as saying. The Indian officials emphasised that restricting their refiners’ access to oil from Russia, Iran and Venezuela simultaneously could potentially trigger a worldwide price surge, as confirmed by individuals familiar with the ongoing negotiations.Indian officials visited the United States for discussions following Washington’s implementation of 50% tariffs on India. The country has continued importing Russian crude, though at reduced volumes, despite these penalties.During his visit to New York, Commerce Minister Piyush Goyal indicated India’s intention to enhance its US oil and gas procurement, stating that “our energy security goals will have a very high element of US involvement”.
India’s Crude Oil Trade with Russia
Since the Russia-Ukraine conflict began in 2022, India has significantly increased its crude oil imports from Russia.
Who bought Russia’s fossil fuels after EU bans
Finland’s Centre for Research on Energy and Clean Air (CREA) data shows India purchased Russian oil worth ₹132 billion (about ₹13.39 lakh crore) from early 2022. This accounts for 20% of Russia’s overall oil export revenue of ₹640 billion during this timeframe.Despite Western opposition, Russian oil continues to be available in global markets without complete restrictions, allowing countries such as India and China to obtain it at discounted rates.India’s additional purchases included Russian coal valued at ₹16 billion, taking its total fossil fuel imports from Russia to ₹148 billion. Russia’s total earnings from oil, gas, and coal exports since the conflict began amounted to ₹931 billion.CREA data indicates that while Chinese Russian oil imports were ₹193 billion, India’s purchases exceeded both the EU’s ₹105 billion and Turkiye’s ₹71 billion.China ranked as Russia’s top customer with total fossil fuel imports of ₹268 billion, with the EU following at ₹213 billion, India at ₹148 billion, and Turkiye at ₹111 billion.
