The current political situation is unlikely to have an impact on Russian crude exports as Moscow has a "very special mechanism" to get around punitive
measures imposed by the Donald Trump administration to curb energy trade, Russian officials said on Wednesday. The officials also pointed out that Russia also remains a "partner of choice" for India in defence. They confirmed that President Vladimir Putin will travel to India later this year for an annual summit though dates are yet to be finalised. Crude oil from Russia accounts for almost 40% of energy imports by India, which is also the second largest buyer of Russian oil after China. New Delhi significantly ramped up Russian oil buys after Moscow started selling oil at a discount to counter the West slapped sanctions on Russia over the invasion of Ukraine in 2022. The US is set to impose a secondary 25% punitive tariff on Indian exports from August 28 over Russian oil purchases which will be in addition to a 25% reciprocal tariff. Despite the political situation, Russian crude oil exports "would be approximately the same,” Deputy trade commissioner Evgeny Griva told a media briefing. "We can't discuss it because it's really a very special mechanism," he added. 'If the West Criticises You, it Means You are Doing Everything Right' Chargé d’affaires Roman Babushkin, who was part of the presser, added that Moscow would be able to circumvent pressure from Washington over energy trade with India. "If the West criticises you, it means you are doing everything right...We don't expect that to happen (India to stop buying oil from Russia*). We know about the challenging circumstances for India. This is the true strategic partnership we are enjoying. Whatever happens, even during challenges, we are committed to removing any problems...The recent phone call by President Putin to PM Modi ji, explaining and sharing the information about recent developments in Ukraine, means India matters a lot to Russia. We are capable of finding any solution for mutual satisfaction. The deepening of our partnership will help us grow together..." "This is not the first time our trade and economic relations [have been] threatened by external factors. But each and every time, we have managed to succeed in finding ways to cooperate further based on our mutual national interests. We are quite certain that our cooperation will continue," Babushkin said. The officials added that oil supplies to Vadinar refinery in Gujarat, jointly owned by Russian energy giant Rosneft and an investment consortium, hadn't been impacted after it was targeted under a EU sanctions package in July. They added that Russia has a mechanism to tackle shipping and insurance-related issues that have arisen due to EU sanctions. "The recent package of sanctions against Russia from the EU would not have much impact on Russian oil trade because we have been able to significantly reduce our dependence on services the EU provides in recent years," Babushkin added.
The officials also acknowledged that a 5 per cent swing is possible in oil import prices amid the Western tariffs and sanctions, but added that this will be subject to negotiation. They also said India and Russia were on track to achieve the target of $100 billion trade by 2030, thanks to a stable growth of about 10% annually.
Bilateral trade touched a record high of $68.7 billion in 2024-25, though India's exports were worth only $4.88 billion. Babushkin said Russia is working to address the trade imbalance. "We need to reduce the trade imbalance, which is currently about $60 billion. We will remove barriers to trade, facilitate interaction within business circles and give a new push to alternative logistics corridors. And we will further develop our payments and transactions mechanisms,” Babushkin said.
