US President Donald Trump said that Indian Prime Minister Narendra Modi has promised to stop buying Russian oil, marking a possible resolution to a core issue in the diplomatic and trade rift between Washington and New Delhi.
Trump said that Modi made this commitment to him during a call on Wednesday, the content of which had not been disclosed before. The Indian Embassy in Washington did not immediately respond to a request for comment. Indian officials had previously said that if it was economically feasible, India would continue to purchase Russian oil. Benchmark crude oil prices rose on Thursday.
“I’m not happy that India is buying oil. He assured me today that they will not buy oil from Russia,” Trump told reporters at the White House, referring to Modi. “This is a big step. Now I have to get China to do the same.”
Trump did not set a specific timetable for India to cut back on its purchases, nor did he explain how Washington would enforce or review this shift. The US president also did not disclose how India intends to make up for the Russian oil it is giving up, including the possibility of buying more American oil. He said India could not “immediately” stop its purchases and added, “This is a process, but it will be over soon.”
Since Trump imposed a 50% tariff on Indian goods, the relationship between the United States and India has been tense. Trump claimed that this move was a punishment for India’s purchase of Russian crude oil. The relationship between the two countries deteriorated further after Trump imposed a $100,000 fee on new H-1B visa applications. The H-1B visa is mainly used to help Indian tech workers obtain positions in the United States.
Indian refineries are still buying oil from Russia, but a government official said Wednesday that India may increase its purchases of US crude. According to Bloomberg News, India also mentioned other trade concessions, including that it would impose zero tariffs on US auto parts and steel if the Trump administration responds.
Last month, India’s purchase of Russian oil slightly declined, but despite the measures taken by the United States to restrict imports, India still accounted for one-third of Russia’s total oil exports. After the outbreak of the Ukraine war in 2022, India became a major importer of Russian crude oil and was able to obtain Russian crude oil at discounted prices lower than those offered by other suppliers.
Trump has offered some clues that the conflict might be resolved. On Wednesday, he praised Modi as a “great man” and said that the relationship between the two sides is “very good”.
Modi and Trump held talks last week, reviewing trade negotiations. The Indian leader said that the negotiations had made “good progress”.
Trump has more leeway – and can maintain the low oil prices he views as a top economic priority – because the Organization of the Petroleum Exporting Countries is increasing production, which helps boost global oil supplies even as U.S. output reaches record highs.
Earlier this year, Trump threatened to impose a package of tariffs on goods from global trading partners. India was among the first countries to engage in trade talks with the United States. However, the two sides failed to reach an agreement, partly due to New Delhi’s tense relations with Moscow and India’s reluctance to open up its key agricultural market.
Trump criticized India for purchasing Russian oil, claiming that it was fueling President Putin’s invasion of Ukraine. The Modi government, however, argued that India’s purchase of Russian oil was a necessary measure to safeguard the country’s energy security.
