Russia confirmed it will continue supplying oil to India through a “special mechanism,” despite warnings from the United States, according to officials at the Russian embassy in New Delhi. The embassy also indicated plans for trilateral talks involving India and China to foster closer regional cooperation under a broader Eurasian framework.
The announcement follows US President Donald Trump’s imposition of an additional 25% tariff on Indian exports to the US, effective August 27, in response to India’s significant purchases of Russian oil, which now account for 35% of India’s total imports, up from a mere 0.2% before the Ukraine conflict. Trump’s administration has accused India of indirectly supporting Russia’s military operations in Ukraine through these imports.
Roman Babushkin, the charge d’affaires at the Russian embassy in India, stressed that despite political pressures, India is expected to maintain its current oil import levels. He expressed confidence that India and Russia will navigate Trump’s tariffs in ways that protect their national interests.
Trade negotiations between India and the US have recently stalled over India’s agricultural and dairy sectors and its continued procurement of Russian oil. Total tariffs on Indian goods entering the US now reach 50%. Russian officials, including Deputy Trade Commissioner Evgeny Griva, highlighted that purchasing Russian oil remains highly profitable for India, reinforced by a 5-7% discount offered on crude. A special mechanism has been set up to ensure uninterrupted supplies, and Russia has begun accepting payments in Indian rupees following the resolution of previously blocked funds.
Beyond oil, Russia is exploring opportunities to export liquefied natural gas (LNG) to India and expand nuclear energy cooperation, according to Russian First Deputy Prime Minister Denis Manturov.
The geopolitical context is further shaped by high-level visits from New Delhi and Beijing, with hopes of repairing ties affected by past border disputes. Indian Prime Minister Narendra Modi is scheduled to visit China for the first time in over seven years. Meanwhile, Russia continues to push for a trilateral dialogue with India and China to strengthen a “greater Eurasian partnership.” Russian President Vladimir Putin is also expected to meet Modi in New Delhi later this year, with all three leaders attending the Shanghai Cooperation Organisation summit starting August 31.
