New Delhi August 30, 2025
India’s continued purchase of Russian crude oil has played a pivotal role in stabilizing global energy markets and averting a potential worldwide economic crisis, according to recent reports and expert commentary. Despite facing criticism from Western powers, India’s energy strategy has been widely acknowledged as a pragmatic move that helped contain inflation and maintain supply chain equilibrium.
Russia supplies nearly 10% of the world’s oil. Analysts warn that had India halted its imports, crude prices could have surged to as high as USD 200 per barrel, triggering a global inflationary spiral. By maintaining steady purchases, India helped keep oil flowing into the international market, cushioning price shocks and supporting economic stability across regions.
India’s transactions have remained fully compliant with international norms, including the G7 and EU price-cap frameworks. Contrary to allegations of backdoor financing or sanctions evasion, Indian oil imports from Russia are routed through third-country traders and settled in non-dollar currencies such as the UAE dirham. Officials have clarified that Russian oil is not sanctioned in the same manner as Iranian or Venezuelan crude, and the trade is conducted transparently.
The impact of India’s strategy has been felt domestically as well. Despite global oil prices spiking to USD 137 per barrel earlier this year, India managed to cut fuel prices for its citizens. State-run oil companies absorbed losses amounting to ₹21,000 crore, while the government imposed export taxes to prevent profiteering.
India’s refining capacity—ranked fourth globally—has also contributed to market stability. While some refineries focus on exports, nearly 70% of refined fuels remain within the country to meet domestic demand. European nations, having banned direct imports of Russian crude, have increasingly relied on Indian diesel and jet fuel, further validating India’s role in maintaining global supply chains.
External Affairs Minister S. Jaishankar and Ambassador to Russia Vinay Kumar have both defended India’s position, emphasizing that energy security for 1.4 billion people remains a top priority. Kumar noted that India’s cooperation with Russia has helped stabilize the global oil market and that trade is conducted on a commercial basis, not political alignment.
The United States recently imposed additional tariffs on Indian goods, citing concerns over Russian oil purchases. India has rejected these measures as “unfair, unreasonable, and unjustified,” pointing out that other countries—including the US and EU—continue to trade with Russia in various sectors.
India’s approach has drawn praise from global observers, including US Treasury Secretary Janet Yellen, who acknowledged the stabilizing effect of India’s energy policy. Former US Ambassador Eric Garcetti also affirmed that India’s purchases were in line with Western policy objectives, designed to keep Russian oil in the market under controlled pricing.
As geopolitical tensions persist, India’s oil diplomacy stands out as a calculated and responsible effort to balance national interest with global economic stability.
