India will keep importing Russian oil: FM Sitharaman

New Delhi: Finance Minister Nirmala Sitharaman on Friday reaffirmed that India will maintain oil imports from Russia, calling it the most practical option to meet domestic energy needs, even as Indian exporters face fresh challenges from steep US tariffs.

Speaking to CNN-News18, Sitharaman said India’s choices would be guided by affordability and supply logistics. “We will have to take a call which (supply source) suits us the best. So we will undoubtedly be buying it,” she stated. India is the world’s third-largest buyer of crude oil, and petroleum products account for a significant portion of its foreign exchange outflow.

“Whether it is Russian oil or anything else, it’s our decision to buy from the place which suits our needs, whether in terms of rates, logistics, anything,” the minister was quoted as saying.

Her comments follow Washington’s decision last month to impose a 50 per cent tariff on Indian goods. US President Donald Trump alleged that India’s continued oil purchases from Moscow were indirectly aiding Russia’s military campaign in Ukraine. The tariff, applied across several categories of exports, has raised concerns for Indian businesses already facing global headwinds.

Sitharaman said the Centre is preparing a support package to help exporters absorb the impact of the higher duties. “We will come out with something to handhold those who have been hit. The package includes a variety of measures, and something is definitely coming to help them,” she noted.

The finance minister also pointed to long-term policy changes such as the Goods and Services Tax (GST), which she said would help mitigate the pressure on exporters. “The potential tariff impact will be offset by reforms like GST,” she said, adding that the government was committed to ensuring industries remain competitive despite external pressures.with agency inputs