US President Donald Trump on Wednesday said that India’s Prime Minister Narendra Modi has assured him that the Asian country will stop buying oil from Russia.
The development is significant as it comes at a time when India is facing tariffs of up to 50% from the United States, which include a 25% penalty for buying Russian oil.
While speaking to reporters at the White House, Trump said:
I was not happy that India was buying oil. And he (Modi) assured me today that they will not be buying oil from Russia. That’s a big stop.
However, India’s Ministry of External Affairs neither confirmed nor denied the claim, reiterating that its energy policies prioritize consumer interests and national security.
What India said in response to Trump’s remarks
India did not respond directly to the US President’s comments and rather gave a cryptic statement around safeguarding the interest of Indian consumers.
“India is a significant importer of oil and gas. It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective,” a Ministry of External Affairs spokesperson said in a statement.
However, the statement also mentions something about diversifying oil imports to meet market conditions.
“Ensuring stable energy prices and secured supplies have been the twin goals of our energy policy. This includes broad-basing our energy sourcing and diversifying as appropriate to meet market conditions,” the statement added.
Indian refiners ‘surprised’ by Trump’s remarks
The industry is closely following the developments, and as per a Bloomberg report, India’s top oil refiners expect only a partial reduction, not a complete halt, in Russian crude imports despite US President Donald Trump’s claims.
Executives representing over 80% of India’s refining capacity told Bloomberg they have not received guidance from New Delhi and were “surprised” by Trump’s comments.
Companies like Indian Oil, Reliance Industries, Bharat Petroleum, and Hindustan Petroleum are reviewing their procurement strategies, though traders noted no rush to find alternatives.
India-US resume high-level trade talks
Trump’s remark came as India and the United States returned to the table in Washington this week, holding high-level trade talks after months of tariff tensions and stalled negotiations.
Leading the Indian delegation is Commerce Secretary Rajesh Agrawal, who’s tasked with tackling the steep US import duties, as high as 50%, that were put in place during President Donald Trump’s administration.
At the heart of the discussions is the long-awaited Bilateral Trade Agreement (BTA), which both sides are hoping to wrap up by November.
As part of its push, New Delhi has offered to boost energy imports from the US, especially crude oil and liquefied natural gas, as a way to rebalance trade and ease Washington’s concerns about India’s ongoing oil purchases from Russia.
Both countries have also set an ambitious goal: to more than double their current trade volume, from about $190 billion today to $500 billion by 2030.
Still, there are sticking points. The US wants greater access to India’s agricultural and dairy markets, while India is pushing back against tariffs linked to oil prices.
Despite the differences, officials from both sides have described the latest meetings as positive and productive, a sign that progress might finally be on the horizon for one of the world’s most important trade relationships.
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