There are moments when an international relationship is measured in treaties, diplomatic meetings, or joint statements. And there are others when it is measured in barrels of oil.
This week, India warned the United States that new US measures against countries buying Russian oil could affect the bilateral relationship. The warning came after the US House of Representatives approved a bill authorizing President Donald Trump to impose tariffs of up to 100% on countries that continue to purchase Russian energy. India is among the countries that could be affected.

New Delhi's response was equally clear. The Ministry of External Affairs stated that India remains committed to the energy security of its 1.4 billion people and will continue diversifying its supply sources in line with market conditions. It also warned that the US measures could have implications not only for the bilateral relationship but for the international energy market.

And that is where the real story begins.

Oil Is Not Just Oil

India is the world's third-largest oil consumer and relies heavily on imports to meet its needs. Russia became one of its main suppliers after the Russian invasion of Ukraine in 2022, when Moscow began offering discounts to Asian buyers while the West imposed sanctions.

Before the war, Russian oil accounted for less than 1% of Indian imports. In the years that followed, it came to represent more than a third of the crude India imported. An analysis by the Council on Foreign Relations notes that the Russian share reached 35.8% in fiscal year 2024–25.

This takes on relevance in the current context, because for India oil is not merely a commodity. It is transport, industry, agriculture, production, and ultimately the cost of living. That is why New Delhi has argued for years that its purchasing decisions respond to a domestic priority: securing sufficient, stable, and competitively priced energy.
The issue is that Washington is looking at the same barrel from a different perspective: reducing purchases of Russian oil means limiting one of Russia's sources of revenue amid the war against Ukraine. For India, reducing them abruptly means altering a significant part of its energy strategy. The same barrel represents two different national interests.

A Relationship Too Important to Break Easily

What is interesting is that India and the United States are not simply buyers and sellers who now have a trade disagreement. Over the past two decades, they have built a strategic relationship in areas such as defense, technology, trade, and Indo-Pacific cooperation.

Former US Ambassador to India Kenneth I. Juster wrote for the Council on Foreign Relations that the bilateral relationship has advanced extraordinarily over the past 25 years and that, although the current trade dispute is serious, it remains potentially resolvable. He also warned that a prolonged deterioration could extend to areas such as technological and defense cooperation.

It is a paradox: Washington wants India to reduce its dependence on Russian oil. But Washington also needs a strong strategic relationship with India.

And New Delhi wants to deepen its relationship with the United States without giving up the autonomy with which it has historically managed its ties with Russia. This is not an accidental contradiction. It is part of the way India has built its foreign policy.

Ashwini K. Swain, a researcher at the Sustainable Futures Collaborative, argues in an analysis published by the Council on Foreign Relations that India's energy policy is determined to a large extent by its domestic energy security needs. He also notes that oil dependence constitutes a structural vulnerability for the country. This helps better understand India's position, because it is not simply a matter of choosing between Washington and Moscow – it is about how to maintain room for maneuver in a world where great powers are increasingly using trade, energy, and sanctions as instruments of foreign policy.

Sources:

● Reuters, September 17, 2026: approval in the US House of Representatives of the bill authorizing tariffs of up to 100% and the response of the Indian Government. https://www.reuters.com/business/energy/india-vows-protect-energy-security-warns-us-tariffs-could-hit-ties-2026-09-17/
● Ministry of External Affairs of India / official statement, reported by Reuters and Business Standard: India's position on energy security, diversification, and protection of its economic interests. https://www.business-standard.com/india-news/us-bill-empowers-trump-to-target-india-with-100-tariff-over-russian-energy-126091701380_1.html
● Council on Foreign Relations — Ashwini K. Swain, "Oil Energy, India-U.S. Relations, and the Russia Conundrum," February 2026: India's energy dependence, the evolution of Russian oil purchases, and the tension between Russia and the United States. https://www.cfr.org/articles/oil-energy-india-u-s-relations-and-the-russia-conundrum
● Brookings Institution — "Stiffening European sanctions against the Russian oil trade": limits and effects of measures against buyers of Russian oil. https://www.brookings.edu/articles/stiffening-european-sanctions-against-the-russian-oil-trade
● Carnegie Endowment — "India's Oil Security Strategy: Structural Vulnerabilities and Strategic Choices," April 2026: structural vulnerabilities and India's options for its energy security. https://carnegieendowment.org/india/research/2026/04/indias-oil-security-strategy-structural-vulnerabilities-and-strategic-choices