US Ties India Trade Deal to Restrictions on Russian Oil Imports

The Biden administration has told India that slashing Russian oil imports is key to moving forward on a long-awaited trade deal, according to people close to the discussions. New Delhi, however, insists that buying discounted Russian crude remains essential for its economy.

Talks between the two countries are ongoing, with a US official describing them as “heading in the right direction.” Still, Washington is pressing India to do more on market access, trade imbalances, and particularly on reducing its dependence on Moscow’s cut-price energy.

President Donald Trump has made limiting Russia’s oil revenue a cornerstone of his foreign policy, urging India, NATO members, and the European Union to scale back purchases. He argues that the income directly fuels Russia’s war in Ukraine.

Tariffs raise pressure

Washington has tied trade progress directly to India’s energy policy. The US recently slapped an extra 25% tariff on Indian goods, lifting overall duties to 50%. The move has raised tensions and highlighted Trump’s willingness to use tariffs as leverage.

At the same time, the White House has avoided taking similar action against China—another top buyer of Russian crude—while trying to preserve a fragile trade truce with Beijing.

India’s response

India is among the largest buyers of Russian oil and has consistently defended its position, stressing that the supplies are vital to meeting domestic energy needs. Indian officials have also criticized the West for continuing limited trade with Moscow while singling out New Delhi, calling the pressure hypocritical.

Ukraine war deadlock

Trump has expressed impatience with the pace of ending Russia’s war in Ukraine, promising to resolve the conflict immediately if given the chance. His administration sees cutting Moscow’s oil income as a crucial step, but India’s refusal to comply signals a looming impasse.

Source: Web Desk