Moscow/New Delhi | August 21, 2025

Russia on Wednesday dismissed concerns that sanctions and tariffs imposed by the United States and the European Union (EU) could disrupt its oil trade with India, saying it has developed a “very special mechanism” to bypass punitive measures aimed at curbing energy exports.

India is the world’s second-largest buyer of Russian oil after China, with Moscow supplying nearly 40% of New Delhi’s total energy needs. Since Western sanctions followed Russia’s 2022 invasion of Ukraine, India has sharply ramped up its purchases of discounted Russian crude. The U.S., however, is set to impose a 25% punitive tariff on Indian exports from August 28 in response to these oil imports, alongside a 25% reciprocal duty.

Speaking in Moscow during the 26th meeting of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), Russian officials sought to reassure that supplies to India will remain stable. Deputy trade commissioner Evgeny Griva said, “Despite the political situation, we can predict that the level of crude oil imports would be approximately the same. Definitely, there are some mechanisms to supply crude oil. We can’t discuss it because it’s really a very special mechanism.”

Chargé d’affaires Roman Babushkin added that Russia and India had previously overcome similar external pressures. “This is not the first time our trade and economic relations have been threatened by outside factors. 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.”

Officials confirmed that oil supplies to the Vadinar refinery in Gujarat, partly owned by Russian energy giant Rosneft, were unaffected despite being targeted in a recent EU sanctions package. The refinery, with a capacity of 20 million metric tonnes annually, is India’s second-largest single-site facility. Griva noted that Russia had developed alternative shipping and insurance mechanisms that reduced dependence on EU-based services, allowing crude to continue flowing smoothly.

Analysts believe that India, heavily reliant on affordable Russian crude, is unlikely to scale back imports despite growing Western pressure. For Russia, India represents a vital market as it seeks to offset losses from European buyers. With both sides showing political will to protect their trade ties, energy cooperation between Moscow and New Delhi appears set to withstand yet another round of sanctions and tariffs.
Russia Assures India on Oil Trade

Moscow/New Delhi | Aug 21, 2025
Russia has assured India that crude oil supplies will continue uninterrupted despite fresh U.S. tariffs and EU sanctions. Officials say a “special mechanism” has been developed to bypass restrictions, ensuring stable flows to India — now the second-largest buyer of Russian oil. Energy ties between the two nations remain strong despite global pressure.