Russia on Wednesday dismissed fears that US and European Union sanctions could affect oil supplies to India. Senior Russian officials said Moscow has created a “very special mechanism” to bypass restrictions placed by the Donald Trump administration to block energy trade.
Chargé d’affaires Roman Babushkin told reporters that Russia remains India’s “partner of choice” in defence. He highlighted that the recent clashes between India and Pakistan in May proved the effectiveness of Russian weapons, especially the S-400 air defence system. He also confirmed that President Vladimir Putin will visit India later this year for the annual summit, though the final dates are not fixed.
India’s Oil Dependence on Russia
India is the second biggest buyer of Russian oil after China. Moscow supplies nearly 40% of India’s energy needs. Oil imports rose sharply after Western sanctions were imposed on Russia following its invasion of Ukraine in 2022.
The US has announced a 25% punitive tariff on Indian exports from August 28, linked to India’s Russian oil purchases. This will add to another 25% reciprocal tariff already in place.
Despite these pressures, deputy trade commissioner Evgeny Griva expressed confidence. “Despite the political situation, we can predict that the level of crude oil imports would be approximately the same,” he said. “Definitely, there are some mechanisms to supply crude oil. We can’t discuss it because it’s really a very special mechanism.”
Supply to Indian Refineries Unaffected
Officials clarified that the Vadinar refinery in Gujarat, partly owned by Rosneft, has not faced problems despite being targeted in EU sanctions in July. The refinery, with a capacity of 20 million metric tonnes a year, is India’s second largest.
Griva said Russia has developed ways to handle shipping and insurance issues created by EU sanctions. Babushkin added that Moscow has cut its dependence on European services and is confident supplies will continue smoothly.
However, they admitted oil prices may see a 5% variation due to sanctions and tariffs, though this will depend on negotiations.
Trade Growth and Imbalance
India and Russia aim to push bilateral trade to $100 billion by 2030. Current trade stands at a record $68.7 billion in 2024-25, but India’s exports are only $4.88 billion.
Babushkin stressed the need to reduce the imbalance of nearly $60 billion. “We will remove barriers to trade, facilitate interaction within business circles and give a new push to alternative logistics corridors. And we will further develop our payments and transactions mechanisms,” he said.
Defence Ties Remain Strong
Babushkin rejected US criticism of India buying Russian arms, stressing that Moscow is still the “partner of choice for India” in defence. He recalled the joint BrahMos missile project, started in 1998, as a symbol of deep cooperation.
He also noted that Russian systems like the S-400 and BrahMos proved their worth during Operation Sindoor in May. India used them against Pakistan after the Pahalgam terror attack. A Russian-made Su-30 fighter launched the BrahMos missile, while an S-400 destroyed a Pakistani surveillance aircraft 300 km away.
Babushkin also said Russia may join India’s new long-range air defence project, Sudarshan Chakra, which Prime Minister Narendra Modi announced on Independence Day. The system, expected to be ready by 2035, will protect Indian cities and critical infrastructure. He added that since the S-400 is already part of India’s defence, Russian technology will likely play a role in its upgrade.
Diplomatic Engagements Continue
The comments came just hours after Indian foreign minister S Jaishankar reached Moscow for talks with his Russian counterpart Sergey Lavrov. He also co-chaired the India-Russia Inter-Governmental Commission meeting with deputy prime minister Denis Manturov.
Babushkin said these discussions are part of the preparations for Putin’s visit to India. He mentioned that Putin has spoken with Prime Minister Modi twice in the last two weeks about Ukraine and his recent summit with Trump in Alaska.
The upcoming India-Russia summit will cover a broad agenda, including trade, investment, energy, infrastructure, nuclear power, and the development of small modular reactors.