‘Good actors’: Why the US allowed India to buy Russian oil despite tariff tensions

The White House on Tuesday again explained its reasoning for allowing India to purchase Russian oil. Speaking to reporters, press secretary Karoline Leavitt said the decision — approved by Donald Trump and the US Department of the Treasury — was taken because “our allies in India have been good actors.”

“We came to this decision as our allies in India have been good actors and had previously stopped buying sanctioned Russian oil. So as we work to appease this temporary gap of oil supply on the world because of the Iranians, we have temporarily permitted India to accept Russian oil,” Leavitt said.

She added that the US approved the move as the Russian oil shipments headed to India were “already at sea” and would “not provide significant financial benefit to the Russian government.”

India ‘allowed’ to purchase Russian oil

Earlier this month, US Treasury Secretary Scott Bessent also said India would be allowed to purchase Russian oil amid an oil supply crunch caused by the ongoing conflict in West Asia. A waiver permitting the purchases was also signed by President Trump.

“Indians have been very good actors. They stopped buying Russian oil when we ordered them; now we are allowing them to accept Russian oil to create supply,” Bessent told Fox News.

The remarks came after the US and India announced the framework of a trade deal that reduced tariffs on New Delhi from 50% to 18%. India had initially been marked for 25% tariffs under Trump’s “liberation day” trade measures.

The tariff was later raised to 50% as a penalty for India’s continued purchases of Russian oil, with Trump accusing New Delhi of “fuelling the war in Ukraine.”

Following the US–India trade deal, the White House said tariffs were reduced after India committed to scaling back its Russian oil purchases.

India, however, has not explicitly said it will halt such imports, stating instead that in a “volatile energy market environment,” New Delhi will continue prioritising the needs of its population of about 1.4 billion.

US–Iran conflict sparks oil crisis

The ongoing conflict involving the United States, Israel and Iran in West Asia has triggered concerns in global energy markets after supply routes were disrupted. Iran has announced plans to close the Strait of Hormuz, a critical maritime corridor through which roughly 20% of the world’s oil and gas supply passes.

Much of the crude exported by OPEC producers such as Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Iran moves through the strait, largely destined for Asian markets. Qatar also sends most of its liquefied natural gas exports through the same waters.

Amid the supply disruption, several Asian economies — including India — are exploring ways to conserve fuel.

In India, the central government has formed a grievance-redress committee and taken steps to increase the supply of liquefied petroleum gas (LPG) following reports of shortages of commercial cylinders in some regions.

According to the Ministry of Petroleum and Natural Gas, the country will prioritise domestic LPG consumption and has asked refineries to ramp up production. Non-essential and commercial use of LPG is also under review.