24 Feb 2026·Source: The Hindu

5 min

International RelationsEconomyNEWS

India's Russian oil imports face uncertainty amid US tariff changes

US tariff changes impact India's Russian oil imports, US goal.

Photo by Joydeep Sensarma

India's crude oil imports from Russia fell to a 38-month low in December 2025, while imports from the U.S. increased. This occurred against the backdrop of the postponement of an Indian trade delegation's visit to Washington and a U.S. Supreme Court order impacting tariffs. The U.S. Supreme Court's order effectively curtails President Trump's authority to impose tariffs on India for purchasing Russian oil. These developments have potential implications for India's trade relations and energy imports. The shift in import patterns suggests a possible recalibration of India's energy strategy in response to geopolitical factors and trade dynamics.

The postponement of the trade delegation's visit adds another layer of complexity to the situation. The delegation was expected to discuss various trade-related issues, including energy imports. The reasons for the postponement were not specified in the provided context, but it introduces uncertainty into future trade negotiations between India and the U.S.

The U.S. Supreme Court's decision directly affects the application of tariffs on Indian imports, particularly concerning Russian oil. This legal development alters the landscape of trade relations, potentially influencing India's decisions regarding its energy sources. The interplay between these events—reduced Russian oil imports, increased U.S. imports, a postponed trade visit, and the Supreme Court's tariff ruling—creates a complex scenario for India's energy and trade policies.

These events are significant for India as they impact its energy security, trade diversification, and diplomatic relations with key partners like the U.S. and Russia. This news is relevant for UPSC exams, particularly in the context of International Relations (GS Paper 2) and Indian Economy (GS Paper 3).

Key Facts

The Indian trade delegation's visit to Washington was postponed.

The U.S. Supreme Court's order on tariffs has implications for India's imports from Russia and the U.S.

India's crude oil imports from Russia fell to a 38-month low in December 2025.

Oil imports from the U.S. rose almost 31% over December 2024.

India imported oil from the U.S. at an average price of $506.7 per tonne in December 2025, almost 8% higher than the average price of Russian oil imported that month.

President Trump had removed the tariffs linked to India’s import of Russian oil on February 6.

UPSC Exam Angles

GS Paper 2: Impact of international relations on India's energy security

GS Paper 3: Government policies and interventions for development in various sectors

Potential question types: Analyzing the factors influencing India's oil import strategy and its implications for foreign policy

In Simple Words

The US government might change how it taxes goods coming from India. This affects how much India buys oil from Russia and America. If the US puts taxes (tariffs) on Indian imports, India might buy less oil from the US and more from Russia.

India Angle

This situation affects everyday Indians because it influences the price of petrol and diesel. If India buys more expensive oil from the US due to tariffs, petrol prices could go up, impacting transportation costs for everyone, from farmers to office workers.

For Instance

Think of it like buying vegetables. If the local market charges more, you might go to a cheaper market further away. Similarly, India shifts its oil purchases based on tariffs to keep costs down.

Changes in oil import policies can affect the prices you pay for fuel and other goods, influencing your monthly expenses.

Oil import decisions based on tariffs directly impact your wallet.

The postponement of the Indian trade delegation's visit to Washington and the U.S. Supreme Court's order on tariffs have implications for India's imports from Russia and the U.S. The U.S.

Supreme Court's order means that President Trump no longer has the legal authority to impose tariffs on India for buying Russian oil. India's crude oil imports from Russia fell to a 38-month low in December 2025, while imports from the U.S. increased.

The article discusses the potential impact of these developments on India's trade relations and energy imports.

Expert Analysis

The recent shifts in India's oil imports, influenced by U.S. policy and legal decisions, highlight the interplay of several key concepts in international trade and energy security.

The Most Favored Nation (MFN) principle, a cornerstone of the World Trade Organization (WTO), dictates that countries should not discriminate between their trading partners. Granting a country MFN status means that you are giving them the best trade terms available, such as lower tariffs. While the U.S. Supreme Court's order limits President Trump's ability to impose tariffs specifically on India for importing Russian oil, the broader implications for MFN status and potential trade disputes remain relevant. If India were to face discriminatory tariffs on other goods, it could potentially challenge the U.S. at the WTO, citing MFN violations.

Another critical concept is energy security, which refers to a nation's ability to access sufficient, affordable, and reliable energy supplies. India's diversification of its energy sources, including increased imports from the U.S. alongside continued (albeit reduced) imports from Russia, reflects its strategy to bolster energy security. The fluctuations in oil imports, as seen with the 38-month low in Russian imports in December 2025, underscore the dynamic nature of energy security in response to geopolitical and economic factors. India aims to reduce its dependence on any single supplier to mitigate risks associated with price volatility or supply disruptions.

The Strategic Petroleum Reserve (SPR) is also relevant. These are stockpiles of crude oil maintained by countries to cushion against supply disruptions. India has been building its SPR capacity to enhance its energy security. While the news doesn't directly mention SPR, the context of fluctuating imports and geopolitical uncertainties makes it a pertinent consideration. A robust SPR allows India to navigate short-term supply shocks without drastically altering its import patterns.

Finally, the concept of trade delegation is important. These delegations are formal groups of government officials and business representatives sent to negotiate trade agreements and foster economic cooperation. The postponement of the Indian trade delegation's visit to Washington introduces uncertainty into the trade relationship between the two countries. These visits are crucial for addressing trade barriers, resolving disputes, and exploring new avenues for collaboration. Their postponement can delay progress on key trade issues and impact overall bilateral relations.

For UPSC aspirants, understanding these concepts is crucial for both Prelims and Mains. Prelims questions can test your knowledge of MFN principles, energy security strategies, and the role of trade delegations. Mains questions can require you to analyze the impact of geopolitical events on India's energy security and trade relations, linking these concepts to India's foreign policy objectives (GS Paper 2) and economic development (GS Paper 3).

Visual Insights

More Information

Background

The dynamics of India's oil imports are shaped by a complex interplay of factors, including geopolitical considerations, economic policies, and international trade agreements. India, being a major energy consumer, relies heavily on imports to meet its domestic demand. This dependence makes it vulnerable to global price fluctuations and supply disruptions. Therefore, diversifying its energy sources and forging strategic partnerships with various oil-producing nations has been a key priority for India. The India-Russia strategic partnership has historically been strong, with Russia being a significant supplier of military equipment and energy resources. However, recent geopolitical events, such as the Russia-Ukraine conflict, have led to increased scrutiny and pressure on countries engaging in trade with Russia. This has prompted India to explore alternative sources and strengthen its energy ties with countries like the U.S. The U.S.-India trade relations have also been evolving, with increasing cooperation in various sectors, including energy. The U.S. has emerged as a major oil exporter, and India has been diversifying its imports to include more U.S. crude oil. The World Trade Organization (WTO) plays a crucial role in regulating international trade and ensuring fair trade practices. The principles of non-discrimination, including the Most Favored Nation (MFN) principle, are fundamental to the WTO framework. Any imposition of discriminatory tariffs or trade barriers can be challenged under the WTO dispute settlement mechanism. The U.S. Supreme Court's order impacting tariffs on Indian imports highlights the importance of adhering to international trade rules and obligations.

Latest Developments

In recent years, India has been actively pursuing energy diversification to reduce its reliance on traditional suppliers. This has involved increasing imports from the U.S., exploring alternative sources like renewable energy, and investing in domestic oil and gas exploration. The government has set ambitious targets for renewable energy capacity addition, aiming to achieve a significant share of its energy mix from renewable sources by 2030. This push towards renewable energy is driven by concerns about energy security, climate change, and sustainable development. The Ministry of Petroleum and Natural Gas has been instrumental in formulating policies and initiatives to promote energy security and diversification. The ministry has been actively engaging with various countries to secure long-term energy supply contracts and explore opportunities for joint ventures in the energy sector. The government has also been promoting the development of natural gas infrastructure, including pipelines and LNG terminals, to increase the share of natural gas in the energy mix. Looking ahead, India is expected to continue its efforts to diversify its energy sources and strengthen its energy security. The country is likely to increase its investments in renewable energy, explore new sources of oil and gas, and forge strategic partnerships with various energy-producing nations. The government is also expected to focus on improving energy efficiency and promoting energy conservation to reduce its overall energy demand.

Frequently Asked Questions

1. Why did India's crude oil imports from Russia decrease in December 2025, despite the ongoing strategic partnership?

The decrease in crude oil imports from Russia in December 2025 is likely due to a combination of factors. These include the increase in oil imports from the U.S., potentially influenced by the U.S. Supreme Court's order impacting tariffs and the postponement of the Indian trade delegation's visit to Washington. The higher price of U.S. oil compared to Russian oil suggests other factors beyond just cost are at play.

2. How might the U.S. Supreme Court's order on tariffs affect India's long-term energy strategy?

The U.S. Supreme Court's order, which curtails the President's authority to impose tariffs on India for purchasing Russian oil, could lead to a recalibration of India's energy strategy. This might involve diversifying energy sources, increasing imports from the U.S., and exploring alternative sources like renewable energy. The postponement of the trade delegation's visit adds uncertainty.

3. What specific data point from this news is most likely to be tested in the Prelims exam, and what would be a common trap?

The 38-month low of India's crude oil imports from Russia in December 2025 is a testable fact. A common trap would be to confuse the direction of the change (increase vs. decrease) or the time period (e.g., saying it was a 48-month low).

Exam Tip

Remember the exact number (38 months) and the direction (decrease). Examiners often play with numbers and trends.

4. How does this news about oil imports relate to India's broader goal of energy security?

This news highlights the challenges India faces in achieving energy security. India aims to diversify its energy sources to reduce dependence on any single country. Fluctuations in imports from Russia and the U.S., influenced by geopolitical factors and trade policies, demonstrate the complexities involved in securing a stable energy supply.

5. If a Mains question asks 'Critically examine the impact of US tariff policies on India's energy security,' what key points should I include?

A 'critically examine' answer should include both positive and negative impacts, and offer your own assessment: * Positive: Increased diversification of suppliers (e.g., more US oil). * Negative: Potential for higher costs (US oil was more expensive), uncertainty due to policy changes. * Assessment: India needs a balanced approach, leveraging both Russian and US sources while investing in renewables.

•Positive: Increased diversification of suppliers (e.g., more US oil).
•Negative: Potential for higher costs (US oil was more expensive), uncertainty due to policy changes.
•Assessment: India needs a balanced approach, leveraging both Russian and US sources while investing in renewables.

Exam Tip

For 'critically examine' questions, always present both sides of the argument and then offer your own informed opinion.

6. This situation sounds similar to the general issue of 'weaponization of energy.' What's the key difference in this specific case?

While 'weaponization of energy' typically refers to a country deliberately cutting off energy supplies for political leverage, this case is more nuanced. Here, the US isn't directly cutting off supplies, but its tariff policies and trade relations indirectly influence India's import choices. It's a more subtle form of influence than outright cutting off supply.

Practice Questions (MCQs)

1. Consider the following statements regarding the Most Favored Nation (MFN) principle: 1. It is a non-discrimination clause under the World Trade Organization (WTO). 2. Granting MFN status means giving a country the best trade terms available. 3. MFN status prohibits a country from imposing any tariffs on another country. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: The MFN principle is indeed a non-discrimination clause under the WTO, ensuring that countries do not discriminate between their trading partners. Statement 2 is CORRECT: Granting MFN status means giving a country the best trade terms available, such as lower tariffs and reduced trade barriers. Statement 3 is INCORRECT: MFN status does NOT prohibit a country from imposing tariffs. It only requires that the same tariffs be applied to all countries with MFN status. A country can still impose tariffs, but they must be applied equally to all MFN partners.

2. In the context of India's energy security, which of the following measures is/are being undertaken by the government? 1. Increasing imports from diversified sources, including the United States. 2. Investing in Strategic Petroleum Reserves (SPR) to cushion against supply disruptions. 3. Setting ambitious targets for renewable energy capacity addition. Select the correct answer using the code given below:

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: D

All three statements are correct and reflect the measures undertaken by the Indian government to enhance energy security: Statement 1 is CORRECT: India is actively diversifying its energy sources, including increasing imports from the United States. Statement 2 is CORRECT: India is investing in Strategic Petroleum Reserves (SPR) to cushion against supply disruptions. Statement 3 is CORRECT: India has set ambitious targets for renewable energy capacity addition to reduce its dependence on fossil fuels.

3. Which of the following statements regarding India's crude oil imports is NOT correct? A) India's crude oil imports from Russia fell to a 38-month low in December 2025. B) Imports from the U.S. increased during the same period. C) The U.S. Supreme Court's order increased President Trump's authority to impose tariffs on India for purchasing Russian oil. D) The postponement of the Indian trade delegation's visit to Washington added uncertainty to trade relations.

Show Answer

Answer: C

Option C is NOT correct. The U.S. Supreme Court's order curtailed, not increased, President Trump's authority to impose tariffs on India for purchasing Russian oil. The other statements are factually correct based on the information provided.