US Links Indian Trade Talks to Russian Oil Purchases, Pressures New Delhi on Energy Ties

Trade discussions between the United States and India have hit a critical juncture, with Washington pressing New Delhi to scale back its imports of Russian oil in exchange for progress on a bilateral trade deal, according to Reuters, citing people familiar with the talks. 

American negotiators have conveyed that lowering tariffs and finalizing a pact will depend on India addressing several concerns, including its market access barriers, trade deficit, and continued reliance on discounted Russian crude. A U.S. official described the dialogue as “constructive” but cautioned that significant issues remain unresolved.

The Biden administration has been pushing allies and partners to curtail purchases of Russian energy, arguing that such flows bolster Moscow’s ability to sustain its war in Ukraine. In India’s case, Washington has gone further by tying the oil question directly to trade negotiations.
 

Also Read: India Asks US: Allow Iran Oil to Cut Russian Crude Imports — Here’s Why | Republic World

The United States has already imposed an additional 25% duty on imports from India, effectively doubling tariffs on some goods to 50%. The move was intended to pressure New Delhi into reducing its Russian crude intake, but it has also complicated talks between the world’s two largest democracies.

India, alongside China, remains one of the biggest buyers of Russian oil despite Western sanctions aimed at isolating Moscow. New Delhi has defended its position, pointing to economic benefits from discounted crude and accusing Western nations of double standards, as European firms continue trading with Russia in certain sectors.

While Washington has refrained from similar tariff action against China, citing the need to maintain a fragile trade truce with Beijing, its harder stance toward India underscores the strategic weight being placed on energy policy.

Despite the friction, both sides remain engaged in discussions, with officials noting that progress is possible if compromises are reached on energy and market access.