Russia’s big claim
US President Donald Trump put tariffs on India to discourage Russia from pursuing the crisis in Ukraine, Karoline Leavitt said on Tuesday. India will still receive oil from Russia, albeit at a 5 percent discount, in spite of US pressure and sanctions. “There will be a 5% reduction, subject to discussion, on Russian crude oil purchases to India,” stated Evgeniy Griva, Russia’s deputy trade envoy to India.
Griva went on to say, “India will import roughly the same amount of oil despite the political scenario.” “Discounts are a commercial secret,” he stated. It’s typically simply businessmen talking to each other, and around 5% of the time, I believe. Although it varies, it’s often within 5%.
In an effort to exert pressure on Russia, the United States has placed economic sanctions on India. This information was provided by White House Press Secretary Caroline Leavitt. Up until now, the Trump administration has referred to the economic measures imposed on India for purchasing Russian oil as tariffs or penalties.
To yet, Trump has chosen to levy 50 tariffs on India. This comprises a 25% penalty for buying oil from Russia and a 25% reciprocal tariff, or tit for tat. While the penalty will take effect on August 27, the reciprocal tariff went into force on August 7. Leavitt claims that the goal is to exert secondary pressure on Russia in order to compel Moscow to terminate the conflict.
Cheaper Russian oil increased the profits of Indian oil companies.
Just 1.7% of India’s oil demands were met by imports from Russia in the 2020 fiscal year. In the fiscal year 2025, this percentage rose to 35.1%. The profit margins of oil firms also show the advantages of purchasing cheaper oil from Russia. In accordance with corporate documents…
The combined earnings of Indian Oil, Bharat Petroleum, and Hindustan Petroleum in 2022–2023 were ₹3,400 crores.
These three government enterprises had a 25-fold increase in profit in 2023–2024. They collectively made ₹86,000 crore.
Even though these companies’ 2024–2025 earnings dropped to ₹33,602 crore, it was still larger than their 2022–2023 profit.
25% Extra Tariff Imposed on Oil Purchase from Russia
Earlier, US President Donald Trump had announced imposing a 25% extra tariff on India. He had signed the related executive order. This order will be effective from August 27. The executive order states that this action was taken against India due to Russian oil purchases. Before this, he had announced a 25% tariff on India on July 30. Now India will face a total tariff of 50%.
