India’s Russian oil trade: US secretary claims India ‘geared down and stopped’; threat of 500% tariff legislation looms

US Treasury Secretary Scott Bessent claimed that India has scaled back purchases of Russian oil following trade action taken by President Donald Trump, linking New Delhi’s move to the imposition of tariffs by Washington.Speaking at the World Economic Forum in an interview with Fox Business, Bessent, talking about the Russian Sanctions Bill, said India began buying Russian crude after the Ukraine war started but “geared down and stopped” such imports after Trump imposed a 25 per cent tariff. “India started buying Russian oil after the conflict began but President Trump put a 25% tariff on them and India has geared down and has stopped buying Russian oil.“

His remarks came in the context of a broader discussion on the proposed 500 per cent tariff bill aimed at countries continuing to engage in trade with Russia.However, India has not acknowledged any such cutdown. However, India acknowledged reports about the proposed US legislation seeking to impose steep tariffs of up to 500 per cent on countries procuring Russian crude oil, saying it was closely tracking developments amid growing pressure from Washington, PTI reported. “We are aware of the proposed bill. We are closely following the developments,” External Affairs Ministry spokesperson Randhir Jaiswal said at his weekly media briefing, earlier this month.The proposed legislation, authored by US Senator Lindsey Graham, targets countries that continue to buy and resell Russian oil, with India and China among the largest current purchasers. Graham has said President Donald Trump has approved the bill, which предусматриes tariffs of up to 500 per cent on secondary purchases.

India has repeatedly defended its imports of Russian crude, saying its energy sourcing decisions are driven by market conditions and energy security. External Affairs Ministry spokesperson Randhir Jaiswal said India is guided by global market dynamics and the need to ensure affordable energy for its population.The issue has gained traction amid reports that India has begun trimming Russian oil imports. Graham said earlier this week that Indian Ambassador to the US Vinay Kwatra informed him that New Delhi was reducing purchases and had asked him to convey a request to President Trump to ease the tariff. Washington has been urging India to cut back on Russian oil, arguing that the revenues are funding Moscow’s war in Ukraine.