Trump announced the new trade agreement on Monday, highlighting lower reciprocal tariffs and expanded market access between the US and India. During the announcement, he claimed that India would stop importing Russian oil and significantly increase its imports of American goods.
India has confirmed the tariff-reduction portion of the agreement, with Prime Minister Narendra Modi welcoming the move following a phone conversation with Trump. However, there has been no confirmation regarding the cessation of Russian oil imports.
“So far, we haven’t heard any statements from New Delhi on this matter,” Kremlin spokesman Dmitry Peskov told reporters, according to AFP. Peskov emphasized that Russia values its long-standing strategic partnership with India and intends to continue developing the relationship.
A White House official told Hindustan Times that the additional 25% punitive tariff on India’s Russian oil imports would be removed as part of India’s agreement to cease such purchases, lowering the final tariff to 18%. While India has confirmed the 18% tariff, it has yet to comment on its oil purchases from Russia, a key point of contention between Washington and New Delhi.
Moody’s has warned that an immediate halt to Russian oil imports could disrupt India’s economic growth. “A complete shift toward non-Russian oil could tighten supply elsewhere, push up prices, and lead to higher inflation, given that India is one of the world’s largest oil importers,” the agency said.
Moscow’s response underscores the enduring defense and strategic partnership between Russia and India, even as trade negotiations with the US continue.
