Washington (TDI): Tensions between Washington and New Delhi have flared once again, this time over India’s continued oil purchases from Russia, a move that US Secretary of State Marco Rubio says remains a “point of irritation” in bilateral ties.
Speaking to Fox News Radio on Thursday, Rubio described India as both a “strategic partner” and a close ally. Yet he didn’t shy away from voicing concern over India’s growing reliance on discounted Russian crude, suggesting it was straining relations between the two democracies.
Since 2021, India’s imports of Russian oil have jumped dramatically, from a mere 3% to nearly 40% of its total crude intake in 2024.
While Indian officials have not directly responded to Rubio’s comments, the government has previously defended its oil sourcing decisions, citing the need to shield its vast population, especially the poor, from volatile global energy prices. Officials argue that as a major energy consumer, India must prioritize affordability over geopolitics.
Read More: Dar, Rubio Discuss Tariffs as Aurangzeb Heads to US
Following the onset of the Ukraine conflict, India significantly increased purchases of Russian oil, taking advantage of steep price cuts as Western sanctions narrowed Moscow’s market access.
Rubio acknowledged India’s position, saying the country’s energy demand is immense and that cheaper Russian barrels made financial sense. However, he warned that such purchases indirectly fuel Russia’s war machine in Ukraine.
“The President is clearly frustrated,” Rubio noted. “With so many alternatives in the global oil market, India’s continued reliance on Russian supplies sends the wrong signal.”
India’s petroleum ministry, however, has denied issuing any directive to limit Russian crude purchases.
Still, Petroleum Minister Hardeep Singh Puri recently told the media that India has expanded its supplier base from 27 to nearly 40 countries and is ready to adapt if sanctions disrupt Russian supplies.
Read More: Diplomacy in DC: Dar, Rubio Discuss Trade and Regional Stability
Industry analysts say that any pivot away from Russian oil will likely have only a marginal effect on India’s current account deficit, thanks to falling price gaps. Ratings agency CareEdge highlighted that the difference between Russian Urals and Brent crude has narrowed sharply, down to just $3 a barrel compared to an average spread of $20 last year.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
