US Encouragement of India’s Russian Oil Imports

Amid escalating tensions over India’s purchase of Russian oil, a resurfaced statement by former US Ambassador to India, Eric Garcetti, has highlighted the complex dynamics between Washington and New Delhi. In a video that has recently gained attention, Garcetti revealed that the US had initially encouraged India to buy Russian oil at a price cap. This strategy was part of a broader policy to stabilize global oil prices during the early stages of the Ukraine conflict. Garcetti’s comments were made during the 2024 Conference on Diversity in International Affairs, where he explained that India’s actions aligned with US policy objectives.

US Policy and India’s Role

Garcetti’s remarks underscore a period when the US administration viewed India’s purchase of Russian oil as beneficial. He stated that India fulfilled a critical role by purchasing oil under the price cap, which helped prevent a surge in global oil prices. This approach was not seen as a violation but rather as a strategic move within the framework of US policy. The comments sparked controversy, leading to clarifications from the US Department of the Treasury, which stated that Washington had not explicitly asked India to halt its imports from Russia.

Historical Context of US-India Oil Relations

This is not the first instance where the US has shown support for India’s oil trade with Russia. In November 2022, then-US Treasury Secretary Janet Yellen expressed satisfaction with India’s continued purchases, even if they exceeded the G7-imposed price cap, provided they avoided Western services bound by the cap. Yellen emphasized that this would help lower global oil prices while limiting Russia’s revenue.

India’s Strategic Oil Purchases

India has emerged as a significant buyer of Russian seaborne crude since the onset of the Ukraine war. This shift has allowed India to secure affordable fuel and manage inflation while providing Russia with an alternative market after losing European buyers. Between January and June 2025, Indian refiners imported approximately 1.75 million barrels per day from Russia, accounting for over 35% of India’s total crude imports in 2023.

US Pressure and India’s Response

Recently, US President Donald Trump threatened to increase tariffs on Indian goods due to its Russian oil purchases. This move is part of Trump’s broader strategy to pressure Moscow into peace negotiations with Kyiv. In response, India has pushed back against these threats, arguing that its imports are necessary due to traditional suppliers redirecting their exports to Europe.

Trump’s Energy Agenda

At the core of Trump’s pressure on India is his ambition to boost American oil exports. With significant backing from US fossil fuel companies, Trump’s administration aims to increase American energy influence globally. Since Trump took office, US crude shipments to India have surged by over 50%, highlighting his administration’s focus on expanding energy trade with New Delhi.