Russia Contradicts Trump, Says Delhi Hasn’t Flagged Any Oil Cut Hours After India-US Trade Deal

New Delhi: Russia on Tuesday said it is determined to expand its relationship with India across all areas, while making it clear that New Delhi has not conveyed any intention to stop buying Russian oil.

Kremlin spokesman Dmitry Peskov said Russia was carefully analysing Trump's remarks on relations with India. Asked directly if India had decided to stop buying Russian oil, Peskov said, "So far, we have not heard any statements from Delhi on this issue."

"We respect bilateral US-Indian relations," Peskov told reporters. "But we attach no less importance to the development of an advanced strategic partnership between Russia and India. This is the most important thing for us," he said, adding, "and we intend to further develop our bilateral relations with Delhi."

Peskov said Moscow has received no official communication from India indicating a halt or reduction in purchases of Russian crude, amid continued global scrutiny of Russia’s energy exports. “We have not heard any official statements from India about stopping purchases of Russian oil,” Peskov said.

Emphasising the broader bilateral relationship, the Kremlin spokesman said Russia is keen to strengthen ties with India on all fronts, underlining the strategic nature of the partnership between the two countries.

Peskov’s remarks come hours after a historic late-night breakthrough on February 2, US President Donald Trump and Prime Minister Narendra Modi finalised a landmark trade deal that effectively ends months of escalating economic friction.

Following a high-stakes telephone call, President Trump announced that the United States will slash total tariffs on Indian goods from a punitive 50% to 18%, a move that includes the immediate removal of the 25% "Russian oil penalty" duty.

India has emerged as one of the largest buyers of Russian crude since the Ukraine conflict, significantly increasing imports due to discounted prices. New Delhi has consistently maintained that its energy purchases are driven by national interest and the need to ensure affordable energy for its population.

India Russia’s Biggest Oil Importer In FY25

India’s crude oil imports from Russia have remained elevated through FY25, with shipments averaging 1.6-1.8 million barrels per day, accounting for roughly 30-35% of India’s total crude imports, according to industry shipping and refining data. This compares to pre-Ukraine conflict levels of less than 100,000 barrels per day, underscoring the structural shift in India’s energy sourcing over the past three years.

Russian crude has been trading at sustained discounts of $5-10 per barrel to benchmark Brent, even after freight and insurance costs, thus making it economically attractive for Indian refiners. The discounted pricing has helped India contain domestic fuel inflation, particularly at a time when global energy markets remain volatile due to geopolitical tensions in the Middle East and supply curbs by OPEC+.

Public sector refiners such as Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL), along with private players Reliance Industries and Nayara Energy, continue to process large volumes of Russian grades, including Urals, ESPO Blend, and Sokol. Industry estimates suggest Russian oil now constitutes over 40% of crude intake for some Indian refiners during peak months.

Payment mechanisms have evolved to bypass traditional dollar-based settlements, with transactions increasingly routed through dirham-denominated trade, alternate banking channels, and non-Western insurers. A significant portion of shipments is also transported via Russia’s so-called “shadow fleet”, thus allowing continued exports despite Western sanctions on shipping and maritime insurance.

‘Discounted Russian Oil’: India Saved $20-25 Billion Since 2022

From a macroeconomic standpoint, India’s increased intake of discounted Russian oil has delivered substantial savings. Analysts estimate cumulative savings of $20–25 billion for India since 2022, strengthening the country’s current account position and easing pressure on foreign exchange reserves amid global monetary tightening.

Russia, meanwhile, has redirected a majority of its seaborne crude exports toward Asian markets, with India and China together accounting for over 70% of Russian oil shipments. India has emerged as Russia’s single-largest crude buyer by value, overtaking traditional European customers who sharply reduced imports following the Ukraine war.