India increased purchases of discounted Russian crude after the 2022 Ukraine war, but official data show India began cutting the value/volume of Russian oil imports in 2025 — a reduction that, according to reporting, predated the U.S. decision to impose steep additional tariffs in August 2025. The episode highlights the interplay of energy security, price incentives, trade coercion and strategic diplomacy among India, Russia and the U.S.

2. Timeline & key recent facts (chronology you should memorise)

• Pre-2022 (historic baseline): India’s crude imports were dominated by Middle East suppliers; Russia’s share was small.
• Post-Feb 2022 (Ukraine war): Western sanctions and Russia’s need for buyers led to large discounts; India sharply increased imports of Russian crude and petroleum products (2022–2024). State refiners and private refiners bought discounted cargoes to reduce refinery costs.
• 2023–2024: Russia’s share of India’s crude/naphtha imports rose sharply (reports show shares in 2023–24/2024–25 in the 30–35% range for certain products).
• 2025 (first nine months / Apr–Sep 2025): Government data and analyses show cuts in the value of Russian oil imports in many months; India’s share of Russian oil in some periods fell (i.e., a reversal of the earlier trend). Reporting suggests these cuts began before the U.S. increased tariffs further in August 2025.
• 27 Aug 2025: U.S. imposed additional tariffs on certain Indian imports (announced as punitive measures tied to India’s purchases of Russian oil); some reports say tariffs were raised up to 25% initially and later doubled to as much as 50% on many lines — creating immediate trade tensions.

3. Why India bought Russian oil (economic & strategic drivers)

1. Large price discounts: Post-sanctions, Russian crude was sold at significant discounts to distant buyers (Asia), improving refining margins for Indian refiners (savings on feedstock). This was a principal commercial reason.
2. Energy security diversification: India sought to diversify suppliers and secure stable long-term oil flows while global markets adjusted after sanctions and supply disruptions.
3. Geopolitical hedging: Maintaining strong strategic ties with Russia (defence, nuclear cooperation, diplomacy) is an important foreign policy consideration for India.
4. Refining & petrochem feedstock needs: Certain Russian grades and product slates matched refinery needs (e.g., naphtha for petrochemicals).

4. Why India began cutting Russian oil imports in 2025 (reported drivers)

• Normalization of discounts / narrowing price advantage: Over time the discount on Russian grades narrowed, making diversification back to Middle East or other suppliers commercially viable.
• Market adjustments & logistical constraints: Shipping, insurance, port availability and arbitrage opportunities changed, affecting purchases.
• Strategic signalling & anticipatory policy: Officials suggested India had a longer-term strategy to reduce dependence on any single supplier; some cuts appear to reflect this strategy rather than direct reaction to U.S. tariffs.

5. The U.S. tariff action — context & character

• What happened (Aug 2025): The U.S. government imposed or increased punitive tariffs on many Indian imports citing India’s continued purchase of Russian oil as indirectly enabling Russia’s war economy. Tariffs were implemented with immediate economic/political effect and escalated tensions. Reuters/Guardian reporting documents tariff hikes and their timing.
• Tariffs as coercive tool: The move fits a pattern where trade policy (tariffs) is used to exert pressure for geopolitical objectives — an instrument of economic statecraft rather than pure commercial policy. Historical analogues include U.S. tariff use vs China (2018–19) and other sanctions/tariffs used to alter behaviour.

6. Historical background: India–Russia energy relations

• Longstanding ties: Energy cooperation accompanies decades of defence and strategic relations (Soviet-era links, long-term defence supplies).
• Pre-2022: India imported little Russian crude relative to Middle East suppliers.
• Post-2022 pivot: Russia became a major supplier to India (crude and refinery feedstocks like naphtha) as discounted cargoes flowed to Asian buyers including India. This shift was commercially driven and filled a market need when European buyers retreated.

7. India–U.S. economic & strategic relations (context)

• Growing strategic partnership: Since the 2000s, India and the U.S. have strengthened ties (defence, trade, counter-terrorism, Quad), but trade frictions exist.
• Economic leverage vs strategic ties: The U.S. retains commercial levers (market access, tariffs, investment clout) that can be used to press partners. Tariff actions in 2025 illustrate how economic coercion can strain otherwise cooperative strategic relationships.

8. Tariffs as a geopolitical weapon — theory & practice

• Why use tariffs? Tariffs are visible, fast, and can target politically sensitive sectors (textiles, gems, footwear) to maximize domestic political pressure. They can be calibrated short of full sanctions but still inflict economic pain.
• Costs & limits: Tariffs can provoke retaliation, encourage market diversification to competitors (e.g., Vietnam, Bangladesh), disrupt supply chains, raise consumer prices, and damage long-term commercial relations. Historically, heavy tariffs can backfire (Smoot-Hawley example) and lower global welfare.

9. Strategic-policy analysis: Why the sequence matters (India cut before tariffs)

• Agency vs coercion: If India’s cuts predated tariffs, it suggests Delhi’s energy decisions were primarily commercial/strategic — not only coerced by U.S. pressure. This preserves New Delhi’s strategic autonomy narrative.
• Diplomacy vs economic coercion: The tariff move raised questions about U.S. willingness to impose costs on a strategic partner to pursue a geopolitical objective (limiting Russia’s revenue). That complicates bilateral cooperation in other domains.

10. Economic & political consequences for India

Short-term

• Exporters hit by tariffs (textiles, gems, leather) face reduced competitiveness; jobs and regional economies (e.g., Gujarat) are affected. Governments may need export relief and market diversification.

Medium-term

• Potential loss of market share in the U.S. to competitors; exporters may pivot to other markets (EU, ASEAN, Africa). Fiscal measures and trade diplomacy required.

Energy sector

• Refiners may shift procurement; resuming Russian purchases remains an option if price advantages re-emerge (reports of resumed purchases later in 2025 suggest cyclical behaviour).

Geopolitical

• Bilateral tensions risk spillovers into defence, tech and investment cooperation if trust erodes — but both sides may compartmentalise strategic cooperation despite trade friction.

11. Policy options for India (recommended, exam-style)

1. Market diversification & resilience: Continue diversifying crude sources (Middle East, Africa, US imports where viable) and invest in strategic oil reserves.
2. Trade diplomacy & negotiations: Use diplomatic channels to de-escalate tariffs; seek exemptions for labour-intensive sectors; pursue dispute settlement where appropriate.
3. Support exporters: Short-term fiscal relief, concessional credit, and rapid market-diversification assistance programs for affected MSMEs.
4. Energy transition & domestic refining upgrade: Accelerate renewables & refine feedstock flexibility so refineries can process a wider slate of crude grades.
5. Strategic communication: Emphasise India’s commercial rationale for procurement decisions while reiterating commitments to shared global norms where applicable.
6. Regional market diversification: Deepen free-trade and trade facilitation with ASEAN, Africa, EU to reduce single-market exposure.

12. Wider lessons: tariffs, strategic autonomy and global order

• Tariffs as statecraft are increasingly used to achieve geopolitical aims; democracies can weaponise trade as readily as autocracies.
• Middle powers’ dilemma: Countries like India must balance commercial benefits, energy security, and strategic relations with major powers — maintaining autonomy while avoiding unnecessary confrontation.
• Global supply chains: The episode underlines the fragility of supply chains and the incentives for countries to build resilience.

13. Short conclusion (to use in answers)

“The 2022–25 episode shows how commercial incentives (discounted Russian crude) and strategic considerations drove India’s import choices, while subsequent market dynamics and policy considerations led to reductions that in several instances preceded U.S. punitive tariffs. The incident illustrates the complex interface between energy security, economic statecraft and great-power diplomacy; India’s response should combine market diversification, export competitiveness measures, and careful diplomacy to safeguard economic and strategic interests.”

Topic based questions & answer pointers

1. “Examine the causes and consequences of India’s shift in oil imports towards Russia after 2022 and the policy reasons for its partial reversal in 2025.”
2. “Tariffs are increasingly used as instruments of foreign policy. Discuss with reference to the 2025 U.S. tariff action on India.”
3. “Assess the implications of the 2025 India–U.S. tariff spat for India’s foreign policy and economic security.”