A high-stakes diplomatic drama unfolded on February 2, 2026, when US President Donald Trump announced a major trade deal with India. The US President stated that the agreement lowers tariffs on Indian goods. In exchange, Prime Minister Narendra Modi committed to stop purchasing Russian oil. Trump further claimed that India would instead increase its energy imports from the United States.
The Kremlin Disputes US Claims
The announcement immediately faced a direct contradiction from Moscow. On February 3, 2026, Kremlin spokesperson Dmitry Peskov stated that Russia had received no official communication from New Delhi regarding a decision to halt oil imports. Furthermore, Moscow reaffirmed its “time-tested” and “strategic partnership” with India, indicating that economic ties between the two nations remain robust.
India’s Strategic Silence
While the US and Russia offer conflicting narratives, the Indian government has maintained a calculated silence. New Delhi has neither explicitly confirmed nor denied the commitment to stop Russian oil imports, choosing instead to focus on the economic benefits of the reduced US tariffs.
In contrast to the US claims of an immediate halt, reports suggest that India might only reduce its Russian oil purchases if alternative, affordable supplies become available. Currently, some Indian refiners have temporarily paused orders due to reduced discounts, yet Russia remains a primary oil supplier for the country. Indian officials have consistently indicated that their energy sourcing is driven by national interest and the need for stable supplies, rather than external pressure.
A History of Escalating Tensions
US-India relations have plummeted in recent months as the Trump administration attempted to coerce India into abandoning cheap Russian crude. President Trump has accused India of effectively “bankrolling” the war in Ukraine through its energy purchases.
The timeline of this economic friction includes several significant escalations:
- August 2025: Trump imposed a punitive 25% tariff on Indian imports to penalise the country for its continued purchase of Russian crude. India refused to back down, asserting its sovereign right to dictate its own energy policy.
- November 2025: The US implemented sanctions targeting any companies or refineries purchasing oil from Rosneft and Lukoil, Russia’s largest exporters and India’s main suppliers.
- January 2026: Just last week, the Trump administration upped the ante by threatening to impose 500% tariffs and withdraw from various India-led global initiatives.
- The current situation is defined by extreme ambiguity as India navigates immense pressure from Washington while striving to preserve its long-standing partnership with Moscow.
Q&A: The US-India Trade and Oil Standoff
What did President Trump claim regarding the new trade deal?
President Trump announced that he would lower tariffs on Indian goods because Prime Minister Modi agreed to stop buying Russian oil and switch to US suppliers.
What is Russia’s official position? Russia denies any change in the status quo. Spokesperson Dmitry Peskov stated that no official notification has been sent by India to suggest a halt in oil trade.
Why has India remained silent on the “oil for tariffs” claim? India is likely navigating a delicate balance. By not denying the claim, it can enjoy the benefits of lowered US tariffs, but by not confirming it, it avoids damaging its strategic ties with Moscow.
Frequently Asked Questions (FAQ)
- Are Indian refiners still buying Russian oil?
Yes, some have temporarily paused specific orders due to smaller discounts. However, Russia continues to be a major supplier of oil to India.
- What were the punitive tariffs imposed in August?
President Trump imposed a 25% tariff on Indian exports to the US. This was in response to India’s ongoing purchase of Russian crude.
- Which Russian companies are targeted by US sanctions?
The latest US sanctions specifically target companies and refineries that buy oil from Rosneft and Lukoil.
- Will India eventually stop buying Russian oil?
The Indian government has stated that energy sourcing is a matter of national interest. Reports suggest they will only consider reducing Russian imports if alternative and affordable supplies are secured.
- How has the Trump administration threatened India recently?
Beyond the initial 25% tariff, the administration has threatened to increase tariffs to 500% and withdraw from several India-led global initiatives