Technicians stand next to the oil platform that is manufactured by Megha Engineering and Buchuirste Limited (MEIL) at a factory of oil and natural gas (ONGC), during a media tour of the factory in the village of Dhamasna in West Gujarat, India, August 26, 2021.
Amit Dave Reuters
Industry sources told CNBC that US President Donald Trump added further pressure on India on Wednesday by raising the tariffs to 50 % – but calls on India to stop buying Russian oil immediately, may cause raw prices.
Trump accused India of “fueling” the war machine in Russia and said the country “Directly or indirectly importing the oil of the Russian FederationAs a result, the United States imposed An additional tariff of 25 % In India, the total fees against the main American commercial partner raised to 50 %.
India was once I encouraged To buy Russian crude by the United States, and unlike LNG, Russian crude has not been approved, but it is traded under the roof of a price to limit Moscow’s ability to profit from selling it. India is one of the largest buyers of Russian oil, according to KPLER data, which shows the total Russian crude exports to about 3.35 million barrels per day, as India takes about 1.7 million and China 1.1 million.
In New Delhi, there should be “disturbance”.
“Joe Biden went to India after the conquest of Ukraine and begged them to take Russian oil, the Indians barely imported any Russian oil, and they were shaking to India, please take the oil,” so that the prices of crude remain low, and they are now doing.
Sources of industry in the Indian oil sector told CNBC that the country has abandoned all international sanctions, and that India is carrying out the global economy “Saleh” by buying Russian oil, which in turn stabilizes prices. The sources did not want to identify it because of the sensitivity of the issue.
India has argued that if it stopped buying Russian oil, a plan must be developed to stabilize energy markets, as well as an emergency to fill the deficiency in the supply if Russian barrels are transferred from the market.
Giovanni Stonovo, UBS commodity analyst, told CNBC,
Russia is the third largest global product, after the United States and Saudi Arabia. Moscow produces approximately 11 million barrels of oil per day, according to US Energy Information Management. Russian crude oil imports in India amounted to 38 % in both 2023 and 2024, currently 36 % in 2025. The total Indian crude imports increase each year with high demand, and as a result, Russian crude imports in 2025 are the strongest annual pace so far.
If this supply is to be removed from the market, the prices will increase, according to the sources of industry in the Indian petroleum sector. A source in the industry told CNBC: “If India stops buying Russian crude oil today, global crude prices may jump to more than 200 dollars a barrel for all international consumers.”
“In the very short term, there is a risk of pop music in Brent prices to $ 80 or more,” McKinale told CNBC. The effect of additional definitions and potential pieces on Russian oil imports will be less disastrous.
U.
A source in the Indian petroleum sector told us, “When they do not want India to buy something, an industry source in the Indian petroleum sector said. This was in fact the case when India was buying Iranian raw one day, which New Delhi was no longer bought and is now punished as Washington doubles in its maximum campaign to pressure against the Islamic Republic,” said a source in the Indian petroleum sector.
“The price of oil had risen to $ 130 a barrel. This was the situation we advised, including our friends in the United States, to return the purchase of Russian oil, but within the maximum prices,” Indian Petroleum Secretary, Hardip Singhi, told Dan Murphy from CNBC.
“The huge duties announced by Trump are” negotiating tactics “, aiming to” restore the share of the lost oil market in India and oil export declines since 2022, and secure an equivalent export to other commodities to India. “
“India has always coordinated closely on the American oil policy, including sanctions on Iranian oil. At the same time, to the Trump administration, energy security, the ability to withstand costs, and reliability are priorities.”
Russian crude has been placed under the ceiling of a price by the European Union since Moscow invaded 2022 to Ukraine. This maximum prices, which were set at $ 60 a barrel, allows Russia to export its raw, but at a price less than the overall commodity. The goal is to reduce Moscow’s revenues from oil exports, which spoils the country’s ability to finance its war in Ukraine. The policy has been implemented by the G7 Nations, hoping to maintain stable supplies of Russian oil in the market.
“The maximum price is a two to two dollar differences,” sources inside the Indian petroleum sector told CNBC.
Even Russian LNG is not “under secondary sanctions in the United States, Europe still buys gas from Russia through pipelines and liquefied natural gas carpets. Only some liquefied natural gas export stations (such as ARTIC 2 LNG) are under the imposition of sanctions, but not all liquefied natural gas exports,”
In 2021, Russia was the largest oil supplier for the European Union. After banning the mass on imports by the sea from Russian crude, the import share of Moscow decreased from 29 % to 2 % in 2025. The European Union still imports 19 % of LNG from Russia, according to data from the first quarter of 2025 from Eurostat.
Russia is a member of Opec Plus, which was established alongside the Kingdom of Saudi Arabia in 2016. The group is working to stabilize oil prices, modify production based on market basics and trends in supply and demand. A group of eight producers has moved a few days ago to increase production in September, completely underestimating and helping calm fears of Russian supply fears.
“While the OPEC+ countries have a backup capacity to treat show disorders, a complete decrease in the production/exports of Russian crude oil will see that the backup capacity is completely diminished. The Biden administration has been aware of it,” Stonovo of Ops said.
Stonovo added that the maximum Russian prices was aimed at “reducing the revenues of the Russian government by allowing Russian oil to remain in the markets and preventing high oil prices,” noting that these decisions were taken in the presidential elections in the United States in the United States
Now, after winning these particular elections, Trump means work. A 25 % additional tariff was slapped in India on Wednesday, CNBC told India that “was not a good commercial partner.”
This means that American relations with New Delhi, the main partner of security and defense, may be in danger. India responded sharply to Trump’s criticism on Wednesday, saying it was “unjustified and unreasonable” and that it bought Russian oil with the support of the United States.
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