Finance minister Nirmala Sitharaman said India will continue buying Russian oil, stressing that the country must choose supply sources that “suit us the best.” Finance minister Nirmala Sitharaman on Friday said India will continue to import Russian oil as it remains cost-effective, despite steep tariffs imposed by the United States on Indian goods.
“We will have to take a call which (supply source) suits us the best. So we will undoubtedly be buying it,” she said. Sitharaman further stressed that India, the world’s third-largest oil importer, must act in its economic interest.The minister added that crude oil and refined fuels account for a major share of India’s foreign exchange spending. “Whether it is Russian oil or anything else, it’s our decision to buy from the place which suits our needs whether in terms of rates, logistics, anything,” the news channel quoted finance minister as saying.
The remarks come after US President Donald Trump imposed a 50% tariff on Indian imports last month, alleging that New Delhi’s oil purchases were funding Moscow’s war in Ukraine.
Nirmala Sitharaman further said the government is preparing a relief package for exporters affected by the punitive US tariffs. She added that structural reforms such as the Goods and Services Tax (GST) would help cushion the impact, noting, “The potential tariff impact will be offset by reforms like GST,” the television network reported.
‘Lost India, Russia to deepest, darkest China’
Trump, who has sought to broker a resolution to the conflict, renewed his criticism on Friday in a post on Truth Social days after Prime Minister Narendra Modi and his Russian counterpart Vladimir Putin attended a summit in Tianjin hosted by Chinese President Xi Jinping. “Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!” Trump wrote.
The Republican President alleges that New Delhi has emerged as the largest buyer of Russian seaborne crude since Moscow’s 2022 invasion of Ukraine. He claims that India is taking advantage of discounted supplies while the US has cut purchases.
Meanwhile, New Delhi has maintained that its imports help balance global markets. India has said its policy is “guided by what is on offer in markets and prevailing global situation,” and determined by “national security imperatives and strategic assessments.”
The finance minister’s comments come amid worsening trade tensions between Washington and New Delhi. Negotiations to ease the US tariff burden have collapsed, with a scheduled visit by American trade officials to India cancelled last month.
