‘Selective Targeting Unfair, Unjustified’: EAM S Jaishankar On Ukraine Conflict Linked Oil Tariffs

India hardened its stance against what it sees as disproportionate economic pressure over its oil trade amid the Ukraine conflict, with External Affairs Minister S. Jaishankar warning that selective targeting through tariffs and other trade measures is “unfair and unjustified.”

Speaking during talks with Poland’s Deputy Prime Minister and Foreign Minister Radosław Sikorski, Jaishankar said India has consistently conveyed its position on the economic consequences of the war, particularly its impact on energy markets.

“In recent past, both in New York last September and in Paris this January, I have candidly shared with you our views on the Ukraine conflict and its implications,” Jaishankar said.

“While doing so, I have also repeatedly underlined that the selective targeting of India is both unfair and unjustified. I do so again today.”

Why Oil Trade Is A Business Issue For India? 

India is the world’s third-largest crude oil importer, meeting over 85% of its oil requirement through imports. Any disruption or distortion in supply directly affects fuel prices, inflation, fiscal balances and corporate input costs, making energy trade a core business and macroeconomic issue rather than a purely diplomatic one.

Since the outbreak of the Ukraine war in February 2022, global oil markets have remained volatile, with Brent crude frequently swinging between $70 and $100 per barrel. For India, securing affordable supplies has been critical to limiting retail fuel inflation, which feeds into transport, manufacturing, and consumer prices.

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Russia’s Growing Role In India’s Crude Basket

Data from India’s petroleum trade flows show a sharp shift in sourcing patterns post-2022:

• Russia has emerged as India’s single largest crude supplier, accounting for roughly one-third of total crude imports in recent fiscal years.
• Prior to the Ukraine conflict, Russian oil made up less than 2% of India’s import basket.
• The shift helped Indian refiners access crude at significant discounts to prevailing global benchmarks, cushioning the economy from price shocks.

Industry estimates suggest discounted crude purchases have helped India save several billion dollars annually on its import bill, easing pressure on the current account deficit and supporting refinery margins.

Tariffs, Trade Pressure, And Inflation Risks

Against this backdrop, Western discussions around tariffs or indirect trade penalties linked to Russian energy flows have raised concerns in New Delhi. Officials argue that singling out India, while global oil continues to be traded through multiple intermediaries, risks distorting markets rather than stabilising them.

Jaishankar indicated that pressure on India is not confined to tariffs alone.

“Of course, the selective targeting is not limited to tariffs, I think there have been other forms of selective targeting,” he said.

India has maintained that its oil purchases comply with international law and are guided by market principles, energy security, and consumer affordability. Officials have also pointed out that oil is a fungible commodity, making selective trade barriers economically ineffective.

India–Poland Trade

Alongside the energy debate, Jaishankar highlighted the expansion of economic ties with Poland, one of India’s key trading partners in Central Europe.

Bilateral trade between the two countries stands at around $7 billion, representing nearly 200% growth over the past decade. Meanwhile, Indian investments in Poland have surpassed $3 billion, generating local employment and fostering manufacturing linkages.

The two sides reviewed cooperation under the Action Plan 2024–28, covering trade, defence manufacturing, clean technologies, and digital innovation, areas increasingly shaped by global supply chain realignments.

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