US pushes to include India's Russian crude imports in trade negotiations

US officials have sought India to include Russian oil purchases in trade talks, even as New Delhi's refiners boost imports

The US has pushed India to include its purchases of Russian oil in trade deal discussions, Bloomberg reported, even as Indian refiners increase imports to meet rising domestic demand.

 

A US delegation, led by Assistant Trade Representative Brendan Lynch, raised the issue during a meeting with Indian negotiators on Tuesday. Such a demand is unusual, as a country’s dealings with a third nation are rarely part of bilateral trade talks.

 

US officials visited New Delhi earlier this week for a day of discussions, aiming to ease tensions after President Donald Trump imposed a 50 per cent tariff on India — one of the steepest in Asia.

 

 

The situation appeared to improve slightly after Trump called Prime Minister Narendra Modi on his birthday, sparking cautious optimism in New Delhi about the potential for a trade agreement, Bloomberg reported.   

 

 

Disagreement over Russian oil tariffs

 

During the Tuesday meeting, India sought the removal of the additional 25 per cent levy on its Russian energy imports. The government has described the extra tariffs as “unfair, unjustified and unreasonable”, arguing that buying Russian oil is essential for energy security.

 

Indian refiners have no plans to reduce Russian crude imports, particularly as domestic fuel demand rises after the monsoon. The government has issued no instructions to curb these purchases, Bloomberg reported on Friday.

 

After the meeting, both sides described the discussions as “positive” and said they covered multiple aspects of the trade deal. They also agreed to “intensify” efforts to reach an agreement.

 

Trade talks hit roadblocks

 

The US and India had previously aimed to finalise a bilateral trade deal by autumn this year. However, negotiations stalled after both sides hardened their positions. Washington is also pressing for greater access to India’s dairy and farm sectors, which New Delhi has been reluctant to open.     

 

‘Very close to Modi, but sanctioned India’, says Trump

 

US President Donald Trump defended the 50 per cent tariffs on India, saying his relationship with PM Modi remains strong despite the move.

 

Speaking at a joint press conference with UK Prime Minister Keir Starmer at Chequers in Buckinghamshire, Trump said, “I'm very close to India. I'm very close to the Prime Minister of India. I spoke to him the other day to wish him a Happy Birthday. We have a very good relationship, and he put out a beautiful statement, too. But I sanctioned them.”

 

Trump explained that half of the tariff is a punitive measure aimed at discouraging India from buying Russian oil, which he believes will lower oil prices and pressure Moscow to withdraw from the war in Ukraine.

 

“Very simply, if the price of oil comes down, Putin is going to drop out. He's going to have no choice. He's going to drop out of that war,” Trump said.

 

Despite the tariffs, India’s imports of Russian crude have remained steady.

 

(With agency inputs)