Indian Prime Minister Narendra Modi has signaled that India will continue purchasing Russian oil, despite mounting pressure from US President Donald Trump, who has threatened further tariffs in retaliation.

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Modi’s government has not issued directives to halt Russian oil imports, with decisions left to refiners based on commercial considerations, people familiar with the matter told Bloomberg. Both state-run and private refiners are free to buy from preferred sources, they said.

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Speaking at a rally in Uttar Pradesh over the weekend, Modi emphasized economic self-reliance in the face of global instability. “Whatever we buy, there should be only one scale: we will buy those things which have been made by the sweat of an Indian,” he said, days after the US imposed a 25% tariff on Indian exports.

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Trump’s administration has intensified criticism of India’s ties with Russia, accusing New Delhi of undermining efforts to pressure Moscow over the war in Ukraine. India has rapidly increased its purchases of discounted Russian crude, now accounting for about a third of its oil imports.

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While Trump claimed he was informed that India would halt Russian oil purchases, Indian officials denied any such commitment. Instead, they described internal discussions as contingency planning should Russian supplies become unavailable.

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Trump’s deputy chief of staff Stephen Miller accused India of “massive” tariffs on US goods and contributing to financing Russia’s war through oil imports. He said “all options are on the table” as the US considers diplomatic and economic measures.

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India, however, has defended its position, maintaining that its foreign relations, including with Russia, are based on “time-tested partnerships.” The Indian Foreign Ministry stressed that bilateral ties with any country should not be judged through the lens of a third nation.

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Despite the trade tensions, Indian and US officials are expected to continue negotiations on a bilateral trade deal, though New Delhi has ruled out opening its dairy and agriculture sectors due to domestic sensitivities.

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The escalation reflects a shift in US policy towards India, as Trump leverages tariffs to curb Russia’s oil revenues, even if it risks straining Washington’s relationship with New Delhi.

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