PM Modi Agreed To Stop Buying Russian Oil, Buy Much More From US: Donald Trump

New Delhi: US President Donald Trump announced on Monday that Prime Minister Narendra Modi has agreed to stop buying oil from Russia and “buy much more” from the US, and "potentially," from Venezuela.

“He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” Trump said in a post on Truth Social, soon after his phone call with PM Modi.

The US had imposed a flat 25% penalty tariffs on India for buying Russian oil, in addition to the 25 percent "reciprocal" tariffs already announced. The effective tariff of 50% was hurting Indian exporters and had led to souring of commercial ties between the two countries.

Russian oil had been a bone of contention between India and the US, ever since Donald Trump came to power in his second term. The Trump administration has been claiming that Indian oil purchases from Russia at a discounted rate, was being used to fuel Russia's war machinery in Europe against Ukraine. Trump claimed on Monday that India's decision to stop its oil imports from Russia will help in ending the war in Ukraine and reach a peace agreement soon.

India had been traditional importer of Russian oil, but has been recently cutting down on its imports from the country, following pressure from the Donald Trump administration. Earlier in January 2026, Treasury Secretary Scott Bessent hinted that the additional 25% tariff on Indian goods could be removed.

US Pressure Tactics on Oil

The Donald Trump administration has long been using its pressure tactics on India to cut down its oil imports from US' adversaries. India had earlier stopped buying oil from Venezuela in 2025. This came after Trump had imposed a 25% tariff on countries buying Venezuelan oil in March 2025. In his latest comments this Saturday, Trump had announced that India is considering buying Venezuelan oil instead of relying on crude from Iran, another adversary of the US. However, India had stopped its oil imports from the Middle Eastern country in 2019, after the US had imposed sanctions against Tehran for allegedly working on its nuclear program.

Reuters reported that to make up for its losses, Indian refineries had to turn to US oil, but later became one of the top buyer of Russian oil, which was allegedly sold to it at a discounted rate.

After the US' capture of then Venezuelan President Nicolas Maduro, Trump has been inviting oil companies and refiners to come and invest into Venezuela. The latest claim of Trump on India likely to resume its oil imports from the South American country comes in this context.

The Trade Deal

Trump's announcement on India stopping its oil imports from Russia come after a phone call between the US President and PM Modi. Trump has also announced that both the countries have agreed to a Trade Deal and from henceforth, the US will charge a reduced Reciprocal Tariff of 18%. Trump said that India will reduce all their trade barriers to “zero”. 

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products,” Trump announced in the same post.

Responding to the trade deal, the announcement of which comes just at the back of the recently signed India-EU trade deal, which is also touted as the “mother of all deals”, US Ambassador to India Sergio Gor applauded the relationship between India and US, saying that President Trump “genuinely considers” Prime Minister Modi a “great friend”.

Prime Minister Narendra Modi thanked the US President for reducing it's tariff on Indian products to 18%. “Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” PM Modi said in a post on X.

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