Written by Karan Sharma August 1, 2025
The US is pressuring India to halt oil imports from Russia, which could lead to several challenges for India:
Without cheap Russian oil, India will have to turn to costlier alternatives, increasing petrol and diesel prices and fueling inflation.
Disruptions in energy supply could raise factory and transportation costs, negatively affecting the economy.
Paying in dollars for oil from other countries will deplete India’s foreign exchange reserves and weaken the rupee.
Russia has been a strategic ally, and cutting oil trade could hurt defense cooperation (e.g., S-400 deal).
Russia has been a strategic ally, and cutting oil trade could hurt defense cooperation (e.g., S-400 deal).
Bowing to US pressure could damage India’s reputation for "strategic autonomy" in global diplomacy.
Expensive fuel may trigger public anger, putting the government under pressure.
Abandoning Russian oil could be an expensive move—both economically and diplomatically. India must carefully balance US pressure with its national interests.