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Union Finance Minister Nirmala Sitharaman on Friday asserted that India will continue importing Russian oil, calling it the most cost-effective option despite steep tariffs recently imposed by the United States on Indian goods.

Speaking to CNN-News18, Sitharaman said India, the world’s third-largest oil importer, must act in its own economic interest. “We will have to take a call which (supply source) suits us the best. So we will undoubtedly be buying it,” she remarked.

India Prioritises Cost and Logistics

The minister stressed that crude oil and refined fuels make up a significant share of India’s foreign exchange spending. “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,” she added.

Her comments came in the wake of US President Donald Trump’s decision last month to slap a 50 per cent tariff on Indian imports, arguing that New Delhi’s purchases of Russian crude were helping fund Moscow’s war in Ukraine.

Relief Package for Exporters

Sitharaman also revealed that the government is working on a relief package for Indian exporters hit by the punitive US tariffs. She said structural reforms, including the Goods and Services Tax (GST), would help soften the blow. “The potential tariff impact will be offset by reforms like GST,” she noted.

Trump Targets Modi, Putin, and Xi

The remarks coincided with a fresh attack from Trump, who criticised Prime Minister Narendra Modi and Russian President Vladimir Putin for their meeting with Chinese Premier Xi Jinping during the Shanghai Cooperation Organisation (SCO) summit.

“Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!” Trump posted.

The Republican leader has repeatedly accused India of taking advantage of discounted Russian oil, becoming the largest buyer of Moscow’s seaborne crude since the Ukraine war began in 2022, even as US imports from Russia dried up.