India’s energy sector is reeling from mounting Western pressure, as both the United States and the European Union intensify efforts to cut off Russian oil revenues. With President Donald Trump announcing punitive tariffs and Brussels targeting refined products, Indian refiners are rushing to diversify supplies and navigate geopolitical headwinds.

Trump Targets Indian Exports Over Russia Ties

President Donald Trump announced a steep 25% import tariff on Indian goods, effective Friday, blaming New Delhi’s ongoing purchases of Russian oil and military hardware. The decision marks a sharp turn in U.S.-India relations, with Trump accusing India of undermining Western sanctions efforts.

Refiners Rush to Secure Alternative Crude

Even before Trump’s announcement, Indian refiners had begun shifting procurement strategies. State-run Indian Oil Corp issued purchase tenders for prompt delivery dates—late September to early October—earlier than usual. Bharat Petroleum Corp also sourced Middle Eastern and West African crude for the same window.

This urgency reflects concerns over both the geopolitical fallout and tightening global supplies, as Russia’s oil exports slow and prices rise.

EU Cracks Down on Refined Fuel Imports

Adding to the pressure, the European Union plans to block imports of diesel produced in India using Russian crude. Indian refiners, who previously exploited such indirect routes to market Russian oil, now face an uncertain future.

As a result, oil processors in India are demanding guidance from New Delhi on the long-term viability of Russian crude supplies.

India's Energy Balancing Act

India imported about 1.63 million barrels of Russian oil per day in 2024, accounting for over a third of its crude intake. That dependency has remained high through 2025 despite intensifying global scrutiny.

With fewer Russian barrels available and global oil prices trending upward, Indian refiners find themselves navigating a complex web of trade disruptions, sanctions risks, and energy insecurity.