Washington Once Backed Indian Oil Buys from Russia
At the height of the Ukraine war’s impact on global energy markets, the United States quietly encouraged India to keep buying discounted Russian oil—within a price cap—to stabilize soaring prices. This policy wasn’t just tolerated; it was a deliberate part of Washington’s design, as admitted by then-US Ambassador to India, Eric Garcetti.
Speaking at a 2024 conference, Garcetti confirmed that India’s actions aligned perfectly with US goals: “They bought Russian oil because we wanted somebody to buy Russian oil at a price cap… they fulfilled that.” His remarks, now resurfacing, expose a deeper contradiction in US foreign policy—especially in light of recent threats from US President Donald Trump.
A Pattern of Silent Approval
Garcetti’s remarks weren’t an isolated admission. In 2022, Treasury Secretary Janet Yellen said the US had “no problem” with India purchasing Russian oil—even above the G7 price cap—provided India didn’t use Western shipping or insurance services. Yellen’s logic was simple: India’s demand helped suppress global oil prices while limiting Russia’s profits.
In 2024, Assistant Secretary Geoffrey Pyatt echoed the same sentiment, saying India’s oil strategy served dual purposes: affordable domestic fuel and international price stability.
India’s Strategy: Energy Security First
As Western nations turned away from Russian crude, India became its top customer. Between January and June 2025, Indian refiners imported nearly 1.75 million barrels per day—making up over 35% of the country’s total oil imports.
This pivot not only shielded India from inflation and high fuel costs but also reshaped global energy flows. The move saved India billions, even as it gave Moscow a vital export market cut off from Europe.
Trump’s Tariff Threats: A Shift in Tone
Fast forward to 2025, and President Donald Trump’s stance is drastically different. Citing India’s continued oil purchases from Russia, Trump recently threatened steep tariff hikes on Indian exports. He claimed India was profiting off Russian oil while ignoring the Ukraine conflict and vowed to “substantially raise” tariffs.
Trump’s ultimatum followed his call for Moscow to advance peace talks or face renewed sanctions. The timing signals a strategic pressure campaign—less about Ukraine and more about forcing India to pivot towards American energy.
India Pushes Back
India’s Ministry of External Affairs didn’t hold back. Calling Trump’s comments “unjustified and unreasonable,” New Delhi pledged to defend its economic interests.
India argued that its Russian oil trade was born of necessity—traditional suppliers were rerouted to Europe after the war began. Far from ignoring the war, India maintained its stance as a neutral actor safeguarding national interest amid shifting global power equations.
What Trump Really Wants: Energy Dominance
Behind Trump’s tough talk lies a clear motive—boosting US energy exports. Since he took office in January, American oil shipments to India have jumped over 50%. The Energy Information Administration confirms US crude now makes up 8% of India’s oil basket.
Trump’s administration has aggressively supported the fossil fuel sector, offering $18 billion in new incentives. India is seen not just as a trade partner, but a key energy buyer. The tariff threats are less about punishing behavior and more about securing market share.
An Unfolding Energy Chess Game
The contradictions in the US stance—first encouraging India’s Russian oil trade, now punishing it—reflect the geopolitical chessboard beneath the headlines. For India, balancing affordability, energy security, and diplomatic neutrality remains key. For the US, it’s about reasserting control in an increasingly multipolar oil economy.