— Indian Prime Minister Narendra Modi lauded India’s expanding energy relationship with Russia during a meeting with President Vladimir Putin in Tianjin, China, even as the United States doubled tariffs on most Indian imports to 50% in retaliation for New Delhi’s purchases of discounted Russian crude.
Key Takeaways
- Modi met Putin on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Tianjin on Monday.
- Washington last week raised tariffs on most Indian imports to 50%, citing India’s continued buying of discounted Russian oil.
- India has become Russia’s largest buyer of seaborne crude since 2022, with imports worth nearly $140bn, according to Indian data.
- Kremlin officials said Modi and Putin spoke one-on-one for about an hour before delegation talks.
- New Delhi says the relationship spans energy, finance, and security, and rejects the U.S. move as “unjustified.”
- Western governments initially tolerated the trade under the G7 price cap framework; the U.S. stance has since hardened.
- Senior Indian officials have engaged Moscow repeatedly in recent weeks; Putin is expected to visit India later in 2025.
Verified Facts
Modi and Putin conferred in Tianjin during the SCO summit, their first in-person meeting of 2025. India’s foreign ministry said the talks covered bilateral cooperation across economic, financial, and energy domains, and noted steady growth in these ties.
The Kremlin said trade and economic cooperation are “showing positive dynamics,” framing the relationship as friendly and trust-based. Kremlin spokesperson Dmitry Peskov added that the leaders held a one-hour conversation in Putin’s limousine before a broader session with their delegations. Modi later posted a photo from the car and described the exchange as “insightful.”
The U.S. escalated trade pressure last week, with President Donald Trump doubling tariffs on most Indian imports to 50%. The White House framed the move as a response to India’s intake of discounted Russian crude since Russia’s full-scale invasion of Ukraine in 2022.
Indian government data indicate India has imported nearly $140bn of Russian seaborne crude since 2022. Much of that oil is refined into petrol and diesel by Indian companies for domestic consumption and export. Western governments, including the U.S., previously tolerated such purchases provided prices complied with the G7 price cap intended to limit Moscow’s revenues while keeping global supplies steady.
Tensions have grown as U.S. officials accuse Indian firms of “profiteering” from Russia’s war. Trump argued on Truth Social that India buys most of its oil and many military products from Russia, while purchasing little from the U.S. New Delhi has rejected the tariff move, calling the targeting of India “unjustified and unreasonable.”
Context & Impact
The tariff hike risks straining a U.S.–India economic relationship that has deepened over the past decade, particularly in technology and manufacturing supply chains. Higher duties could raise costs for Indian exporters in sectors from textiles to machinery and trigger possible countermeasures by New Delhi.
For energy markets, India’s continued access to discounted Russian crude has helped stabilize global prices since 2022 by keeping barrels flowing. A sharper U.S. line now complicates that balance: Indian refiners face greater political scrutiny even as domestic fuel demand climbs and refining margins rely on cheaper feedstock.
Geopolitically, the moment underscores India’s long-standing strategic alignment with Russia, especially in defense procurement, while New Delhi simultaneously tries to maintain constructive ties with Washington and de-escalate tensions with Beijing after their 2020 border clash. Managing these parallel relationships will shape India’s room for maneuver through 2025.
By the numbers
| Metric | Figure | Source |
|---|---|---|
| U.S. tariff on most Indian imports | 50% | U.S. administration announcement |
| India’s Russian seaborne crude imports since 2022 | ~$140bn | Indian government data |
| Leaders’ one-on-one discussion | ~1 hour | Kremlin spokesperson |
| Meeting location/date | Tianjin, Sep 1, 2025 | Official readouts |
Timeline
- Feb 2022: Russia’s full-scale invasion of Ukraine triggers sanctions and a G7 price cap regime.
- 2022–2025: India becomes Moscow’s largest buyer of seaborne crude; refiners expand exports of fuels.
- Early Aug 2025: Trump threatens 50% tariffs on most Indian imports.
- Late Aug 2025: U.S. tariffs on most Indian goods are doubled to 50%.
- Sep 1, 2025: Modi and Putin meet at the SCO summit in Tianjin; leaders hold an extended private talk.
- Later 2025: Putin expected to visit India (date not yet announced).
Official Statements
“India and Russia have walked together, shoulder to shoulder.”
Narendra Modi
Trade ties are showing “positive dynamics.”
Vladimir Putin (via Kremlin readout)
India buys “most of its oil and military products from Russia.”
U.S. President Donald Trump, Truth Social
“The targeting of India is unjustified and unreasonable.”
India’s Ministry of External Affairs
Unconfirmed
- The precise schedule and agenda for a possible Putin visit to India later in 2025 have not been officially announced.
- Company-level pricing and margin details for Indian refiners processing Russian crude remain undisclosed.
- U.S. allegations that Indian firms are “profiteering” are accusations; no independent adjudication has been published.
Bottom Line
Modi’s message in Tianjin signals continuity: India intends to keep Russian oil central to its energy mix despite heightened U.S. pressure. The wager is that energy security and price stability outweigh the costs of a tariff fight—at least for now.
Whether Washington’s tougher line materially shifts India’s calculus will depend on how the tariffs bite, how global oil prices evolve, and whether Moscow and New Delhi can sustain favorable terms without triggering wider sanctions risk.