US Treasury Secretary Scott Bessent claimed on Tuesday, that India has “geared down and stopped” buying Russian oil following a 25 percent tariff imposed by President Donald Trump.
Speaking at the World Economic Forum in Davos, Bessent asserted that the trade measure effectively incentivised New Delhi to pivot away from Moscow’s crude.
These remarks come as Washington weighs a bipartisan “Russia Sanctions Bill” proposed by Senator Lindsey Graham, which could impose extreme tariffs of up to 500 percent on nations continuing to fund Russia’s war effort.
While US officials cite this as a diplomatic victory, recent market data indicates that while overall volumes have dipped by roughly 30 percent, some major Indian refiners are actually increasing their intake of discounted Russian barrels.
Trump Tariff Threats
The claim of India’s complete withdrawal from Russian energy markets appears in the context of an aggressive new “America First” trade doctrine. In August 2025, the Trump administration initiated punitive 25 percent tariffs on Indian exports specifically to curb New Delhi’s reliance on discounted Russian crude.
This pressure has now escalated with Senator Graham’s proposed legislation, which targets secondary buyers of Russian oil with “bazooka” tariffs. US officials argue that President Trump already possesses the legal authority under the International Emergency Economic Powers Act (IEEPA) to execute these hikes without waiting for Senate approval.
The objective is to dismantle the “shadow fleet” and financial pipelines supporting Moscow, using the US market’s massive leverage as a primary weapon.
India Stops Buying Russian Oil?
Despite Secretary Bessent’s categorical statement that India has “stopped” buying, industry statistics tell a more nuanced story of recalibration rather than total cessation.
Reports from the first half of January 2026 show that while major players like Reliance Industries have skipped Russian cargoes, state-run Indian Oil Corp and Rosneft-backed Nayara Energy have actually boosted their intake to capitalise on widening discounts.
“India started buying Russian oil after the conflict began, but President Trump put a 25% tariff on them, and India has geared down,” Bessent stated during his Fox Business interview.
Conversely, India’s Ministry of External Affairs spokesperson Randhir Jaiswal reiterated the nation’s sovereign stance, saying, “We are fully aware of the proposed bill… India remains guided by the imperative of securing energy at affordable prices for its 1.4 billion people.”
The Logical Indian’s Perspective
At The Logical Indian, we believe that the pursuit of global peace must not come at the cost of the economic survival of developing nations.
While the desire to end the conflict in Ukraine is a shared humanitarian goal, the use of “economic ultimatums” like 500 percent tariffs creates a climate of fear that destabilises global markets and punishes the most vulnerable populations through inflation.
True diplomacy is rooted in dialogue and empathy, not in forcing sovereign nations to choose between their energy security and international friendships. We urge both Washington and New Delhi to move past the rhetoric of coercion toward a collaborative framework that respects national interests while promoting global stability.
