INDIA’S RUSSIAN-OIL POLICY CREATES NEW TRADE AND ENERGY-SECURITY PRESSURE

India is facing a difficult balance between maintaining energy security and managing the potential consequences of US measures targeting countries importing Russian oil. The United States has advanced legislation authorising potentially severe tariffs against countries continuing to purchase Russian energy, while India has reiterated that its energy sourcing decisions are based on national interest and the need to secure reliable supplies for its large population. Indian refiners have continued to arrange Russian crude alongside supplies from other countries. The issue matters to Indian businesses because any reduction in access to discounted Russian crude could increase input costs, while punitive tariffs could affect India’s broader trade relationship with the United States. Refiners are therefore seeking clarity and possible exemptions as the government works to protect both energy security and trade interests. The situation illustrates the increasingly complicated environment facing Indian companies that operate across global energy and geopolitical markets.