Finance Minister Nirmala Sitharaman on Friday said India will continue importing Russian oil because it is cost-effective, despite steep US tariffs on Indian goods. She told CNN-News18, “We will have to take a call which (supply source) suits us the best. So we will undoubtedly be buying it.” She added that India, the world’s third-largest oil importer, must protect its economic interests.

Sitharaman explained that crude oil and refined fuels take up a large part of India’s foreign exchange. She added, “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 comments follow US President Donald Trump’s 50% tariff on Indian imports last month. Trump argued that India’s oil purchases support Moscow’s war in Ukraine.

Government Moves to Help Exporters

Sitharaman said the government is preparing a relief package for exporters hit by the US tariffs. She also highlighted that reforms like the Goods and Services Tax (GST) will reduce the impact. “The potential tariff impact will be offset by reforms like GST,” she said.

Trump Criticizes India’s Oil Deals

Trump renewed his criticism on Friday on Truth Social after the Tianjin summit with PM Modi, Russian President Vladimir Putin, and Chinese President Xi Jinping. He wrote, “Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!”

He accused India of becoming the largest buyer of Russian seaborne crude since Moscow invaded Ukraine in 2022. He claimed India took advantage of discounted oil while the US reduced its purchases.

India Stands by Strategic Interests

India insists its oil imports stabilize global markets. Officials said the policy is “guided by what is on offer in markets and prevailing global situation” and based on “national security imperatives and strategic assessments.”

Trade tensions with the US continue to rise. Negotiations to ease tariffs have stalled, and a planned visit by American trade officials to India was cancelled last month.