Based on reports and open source intelligence...

Editor's note: ...there is strong evidence the British are indirectly purchasing Russian oil through a "loophole" involving India. This practice is not illegal and has become a significant source of contention in international relations. India purchases Russian oil and is re-selling it for a profit including to Britain. Is President Trump indirectly threatening the British by threatening tariffs on goods from India? India's modi told Trump to shove it. The process is often referred to as "laundering" or "re-exporting" of Russian oil. The UK and other European countries have banned the direct import of Russian crude oil and oil products in response to Russia's SMO into Ukraine. However, there is a key exception: once Russian crude oil is refined into new products in a third country, its origin is considered to be that of the refining country. In this case India. India buys discounted Russian crude oil and after useless self-destructive Western sanctions were imposed in 2022, Russia began selling its crude oil at a deep discount. India, which is the world's third-largest oil importer, significantly increased its purchases of Russian crude to take advantage of these low prices. Russia is now India's top oil supplier. "Loophole": Because the oil has been refined in India, it is "legally" considered "Indian oil", not "Russian oil." Those who make the rules don't have to follow them. The Observatory of Economic Complexity and government reports show a significant increase in the value of refined petroleum products exported from India to the UK. Let the sanctions expand. Russia has maintained its economy and oil revenue with surprising resilience. 
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US Warns All Russian Oil Buyers: Sanctions Could Expand

India Defies Trump, Sends High-Level Delegation to Moscow

August 8, 2025 | By Pravda.ru

The White House has imposed 25% tariffs on Indian imports for continuing to buy Russian oil and warns similar penalties may follow for other nations defying President Trump's sanctions ultimatum.

The United States reserves the right to expand customs tariffs, initially imposed on Indian goods, to products from all nations that continue purchasing raw materials from Russia despite warnings from President Donald Trump. This is according to a statement released by the White House.

The US administration may introduce increased duties on any country ignoring the call to halt imports of Russian resources in order to pressure Moscow into ending military operations in Ukraine. The move aims to reduce Russia's budget revenues from energy exports and push it toward signing a peace deal, the statement clarified.

India has already been hit with a 25% import duty on goods entering the US market. Similar measures could soon target other major buyers of Russian raw materials, including those importing oil “directly or indirectly.”

Trump accuses India of profiting from Russian oil trade

On August 4, President Trump threatened to "substantially" raise tariffs on New Delhi for re-exporting Russian oil. "India not only buys enormous volumes of Russian oil, but also resells a large portion on the open market for huge profits," he stated. 

According to Bloomberg, India has continued purchasing Russian crude despite US warnings of tariffs.

India sends security adviser to Moscow

The Indian Ministry of External Affairs responded that the country is forced to buy oil from Russia and criticized what it called “unjustified and unfair” accusations. "The very countries criticizing us continue their own trade with Russia. Unlike ours, their transactions are not driven by vital national necessity," the ministry said.

New Delhi explained that traditional suppliers diverted oil to Europe after the outbreak of war in Ukraine, and that the US had actually encouraged Indian purchases to stabilize global energy markets.

"The very countries criticizing us continue their own trade with Russia. Unlike ours, their transactions are not driven by vital national necessity."

In response to Trump's threats, The Times of India reported that India is dispatching a "high-level" delegation to Moscow, including National Security Adviser Ajit Doval. Although the visit was planned in advance, its timing has taken on new significance.

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