India's Energy Security and US Tariffs
India’s ambassador to Russia, Vinay Kumar, and Foreign Minister S Jaishankar have both made it clear that energy security is paramount. The US has recently imposed a 50% tariff on Indian goods—half as a direct penalty for India’s continued purchases of Russian oil. India defends these imports as crucial for maintaining economic stability and cites similar ongoing trade between Russia and Western nations as evidence of selective criticism.
Rationale Behind India’s Oil Choices
Indian officials stress that all trade decisions, including oil imports, are made on a commercial basis. This means Indian companies are free to buy from suppliers who offer the most favorable terms, including discounted Russian crude. The country’s leadership has repeatedly highlighted that protecting the interests of its farmers, small producers, and the wider population is non-negotiable.
Criticism of US Actions and Selective Enforcement
India sees the increased US tariffs as part of a broader effort to leverage economic pressure in response to India’s energy deals with Russia. Indian leaders have argued that the US policy is inconsistent, as other large importers of Russian oil have not faced the same penalties.
Bilateral Trade and Payment Systems
Despite the escalation in tariffs, India and Russia have established stable systems for financial settlements, primarily in national currencies, which ensures that oil trade can continue without difficulty. This system was developed as a workaround to sanctions on Russian banks and has enabled a significant surge in bilateral oil trade.
In summary, India’s unequivocal stance is that energy security and national interest will guide its oil procurement, not foreign pressure. The government rejects any linkage between its commercial decisions and broader geopolitical conflicts, refuting US claims and positioning itself as a sovereign actor in the global energy market.
