US Wanted India To Buy Russian Oil When Ukraine War Started. What Changed

Amid US President Donald Trump's increasing threats to India over its purchases of Russian oil and New Delhi's pushback, an old comment by former US Ambassador to India, Eric Garcetti, has resurfaced, highlighting the US administration's self-contradictory stance on the issue. In a now-viral video, Garcetti can be heard admitting that it was Washington that had encouraged New Delhi to buy oil from Moscow at a price cap to stabilise global prices.

Garcetti made the remarks during the 2024 Conference on Diversity in International Affairs, where he said India's move was part of America's "design of the policy".

"They bought Russian oil because we wanted somebody to buy Russian oil at a price cap. That was not a violation or anything. It was actually the design of the policy because, as a commodity, we didn't want the oil prices going up, and they fulfilled that," he said.

Throwback: Garcetti Claimed India Did What it Was Told & Bought Russian Oil

The former US ambassador to India mustering all his neo-colonial powers to suggest America ORDERED India to start buying Russian oil.

How does that look right now? 👀😂 https://t.co/HSc0KVBTh7 pic.twitter.com/hhsFIS9A4X

— RT_India (@RT_India_news) August 5, 2025

He claimed that the US were happy India "fulfilled" the order to buy sanctioned Russian oil, calling it one of the "smaller victories" they had in 'guiding' India to American goals. At the time, Garcetti's comments had sparked a row, with the US Department of the Treasury issuing a statement saying Washington had not asked India to stop importing crude oil from Russia.

Other Times When The US Encouraged India's Russian Oil Purchase

But Garcetti's remarks were not the stand-alone instance when America had openly encouraged and supported India's oil trade with Russia.

In November 2022, the then US Treasury Secretary, Janet Yellen, had said Washington was happy for India to continue buying as much Russian oil as it wants, including at prices above a G7-imposed price cap mechanism, if it steers clear of Western insurance, finance and maritime services bound by the cap.

In an interview with news agency Reuters, she noted that the cap would still drive global oil prices lower while curbing Russia's revenues. She also noted that Moscow would not be able to sell as much oil as it does now once the European Union halts imports without resorting to the capped price or significant discounts from current prices.

"Russia is going to find it very difficult to continue shipping as much oil as they have done when the EU stops buying Russian oil," Ms. Yellen said. "They're going to be heavily in search of buyers. And many buyers are reliant on Western services."

In February 2024, then US Assistant Secretary of State for Energy Resources Geoffrey R. Pyatt noted that New Delhi had informed Washington that its plentiful purchases of Russian oil since the start of the Ukraine war had served the twin objectives of keeping global crude prices under check while serving its own citizens with affordable fuel. 

"On Russian oil, this was a big part of my conversation with Minister Puri. We both agreed - and I said the same thing at much greater length on my visit to India last year. India has played a key role in our effort to stabilise global energy markets in the face of the extraordinary destabilisation caused by Vladimir Putin's brutal invasion of Ukraine and his weaponisation of his oil and gas resources," Pyatt had said.

Why India Buys Russian Oil

India has become the biggest buyer of seaborne crude from Russia-- which is under Western-led sanctions over its war in Ukraine-- since Moscow launched a full-scale invasion of Ukraine, providing a much-needed export market for Moscow after it was cut off from traditional buyers in Europe because of the war. That has drastically reshaped energy ties, with India saving itself billions of dollars while bolstering Moscow's coffers.

Between January and June 2025, Indian refiners imported about 1.75 million barrels per day of Russian oil, up 1 per cent from a year ago. Russia contributed over 35 per cent of India's total crude imports in 2023. The move helps New Delhi manage inflation and cut import bills. 

What Trump Wants From India

US President Donald Trump has threatened to hike US tariffs on goods from India over its purchases of Russian oil. Trump's heightened pressure on India comes after he signalled fresh sanctions on Moscow if it did not make progress by Friday towards a peace deal with Kyiv, more than three years since Russia's invasion.

Moscow is anticipating talks this week with the US leader's special envoy Steve Witkoff, who is expected to meet President Vladimir Putin. On Monday, Trump said in a post to his Truth Social platform that India was "buying massive amounts of Russian Oil" and selling it for "big profits."

"They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA," Trump added, without providing details on what tariff level he had in mind. 

India's Pushback

New Delhi quickly pushed back, saying the move was unjustified and vowing to protect its interests. Even before the threat, an existing 10 per cent US tariff on Indian products is expected to rise to 25 per cent this week.

"The targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," India Foreign Ministry spokesman Randhir Jaiswal said in a statement after Trump's announcement.

India has argued it "began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict."

India is not an export powerhouse, but the United States is its largest trading partner.

What Trump Actually Wants

At the heart of Trump's pressure campaign against India is his goal to boost American oil exports. Trump's second presidential campaign was heavily backed by US fossil fuel giants, and his latest tax package offers nearly $18 billion in new incentives for the oil and gas sector, according to a report by The New York Times.

India is already a big customer of US products, and Trump seems to be using tariffs as leverage to push for more. Since Trump came to power in January, US crude shipments to India surged over 50 per cent, now making up 8 per cent of India's oil imports, according to the US Energy Information Administration.

If India starts buying more American oil and LNG, it will further strengthen US energy clout and help Trump's backers profit.