India Agrees to Reduce Russian Oil Imports in U.S. Trade Deal

India has reached a pivotal agreement to curtail its imports of Russian oil as part of a broader trade deal with the United States. The breakthrough follows months of strained negotiations, where U.S. trade relief was explicitly tied to New Delhi distancing itself from Moscow's energy exports. This deal, if finalized, would mark one of the most significant tariff reductions under the TRUMP administration, which has consistently pressured India to align with U.S. sanctions against Russia since the Ukraine invasion.

In addition to energy concessions, the framework permits India to increase its import quota for non-GMO corn from the U.S., currently limited to 500,000 tonnes annually, while retaining a 15% duty. Negotiators are also developing a dynamic mechanism to periodically reassess tariff and market access terms as geopolitical and economic conditions evolve.

The diplomatic maneuvering reached a crescendo with a tense phone call between President Donald Trump and Prime Minister Narendra Modi. Trump publicly asserted that Modi committed to scaling back Russian oil purchases, warning of continued "massive" tariffs for non-compliance. Modi's subsequent social media post acknowledged the conversation but conspicuously avoided direct reference to the oil dispute, instead emphasizing bilateral unity against terrorism.