• Russia plans a special mechanism to ensure oil supplies to India despite U.S. tariffs.
• The U.S. imposed a 25% tariff on Indian goods as punishment for Russian oil purchases.
• India has significantly increased its Russian oil imports since the Ukraine conflict, totaling ₹13.39 lakh crore.
• India's oil imports from Russia are now over 20% of Russia's total crude exports during the war period.
• The upcoming meeting between Modi and Putin aims to bolster their economic relationship further.

Amid rising tensions with the United States, Russia has reaffirmed its commitment to supplying oil to India, highlighting a "special mechanism" to maintain these critical energy ties. Roman Babushkin, the charge d’affaires at the Russian embassy in India, expressed confidence that India and Russia would continue their joint efforts to overcome U.S. sanctions, describing the 25% tariff imposed by U.S. President Donald Trump on Indian goods as "unjustified" and without legal standing, according to Indiatimes and South China Morning Post.

The U.S. tariffs, beginning on August 27, set India's imports of Russian oil under scrutiny, as they constitute about 35% of India's total oil imports. Babushkin reiterated that these tariffs would not significantly alter the flow of oil, highlighting India's deep-rooted strategic ties with Russia, especially concerning energy procurement, reports Channel News Asia.

Since early 2022, India has ramped up its crude oil purchases from Russia, reportedly spending ₹13.39 lakh crore, which accounts for approximately 20% of Russia’s total oil export earnings during the conflict. This has positioned India as a critical buyer of Russian crude, contrasting with accusations from U.S. officials, who argue that such purchases indirectly finance the ongoing conflict in Ukraine, according to Indiatimes and Al Jazeera.

The potential financial implications of U.S. tariffs on Indian imports are significant, considering companies like Reliance Industries have drastically increased their Russian oil imports. A notable shift occurred from 3% of total crude imports to around 50% following the conflict's escalation, underscoring how market dynamics have shifted due to geopolitical pressures. The company's strategy highlights profit opportunities despite political scrutiny, as indicated by reports from South China Morning Post and Indiatimes.

Furthermore, the Russia-India relationship appears resilient, with expectations set for a meeting between leaders Modi and Putin aimed at further solidifying trade ties. Officials have expressed optimism about maintaining stability in oil transactions, despite the increasing scrutiny from the U.S. regarding India's energy sourcing practices, according to Channel News Asia.

As the global landscape shifts, the importance of India's ongoing trade with Russia is ever more apparent, presenting both opportunities and challenges to navigate U.S. policies and international relations. The stance taken by both nations reflects their longstanding cooperation rooted in mutual economic benefits, as outlined in various reports including those from South China Morning Post and Indiatimes.