Trump Claims PM Modi Pledged to Reduce Indian Purchases of Russian Oil
Recent statements by former U.S. President Donald Trump indicate that Indian Prime Minister Narendra Modi has reportedly assured him that India will curtail its purchases of Russian oil. Trump made the claim during a rally in North Carolina, stating Modi “told me so himself.”
This development comes amidst ongoing U.S. pressure on India to reduce its reliance on discounted Russian crude, which has become a significant source of energy for India as the onset of the conflict in Ukraine in February 2022 and subsequent western sanctions on moscow. India and China are currently the largest buyers of Russian seaborne crude.
The potential shift in India’s energy sourcing could considerably impact Russia‘s revenue stream and reshape global energy markets. A halt to Indian imports would represent a major change in position by one of Moscow’s key energy customers.
Strained US-India Relations & Potential for Increased US Oil Imports
Trump’s claim follows a period of strained relations between the U.S. and India. During his presidency, Trump imposed a 50% tariff on goods from India and sought to increase fees for H-1B visas, commonly used by Indian tech workers.
Responding to the news, Indian opposition leader Rahul Gandhi criticized Prime Minister Modi, alleging a fearful response to Trump’s pressure, citing instances like the cancellation of a Finance Minister’s visit to the U.S. and Modi’s perceived deference to Trump despite perceived slights.
Together, India is exploring opportunities to increase its oil purchases from the United States. Trade Secretary Rajesh Agrawal stated on Wednesday that India has the capacity to purchase an additional $15 billion of oil from the U.S.,building on current energy purchases which total $12-$13 billion annually.
India’s Prior Position & New Delhi-Moscow Ties
For months, Prime Minister modi resisted direct U.S. pressure to halt Russian oil imports, with Indian officials consistently defending the purchases as crucial for the nation’s energy security. Russia currently supplies approximately one-third of India’s total oil imports, exporting 1.62 million barrels per day in September.
Trump’s approach focuses on leveraging bilateral relationships to isolate Russia economically, rather than relying solely on multilateral sanctions. Notably, he has largely refrained from similar pressure on China, perhaps due to the complexities of the ongoing U.S.-China trade war.
The declaration of the potential shift in India’s oil policy followed a meeting between Trump’s new ambassadorial pick for India, Sergio Gor, and Prime Minister Modi, where defense, trade, and technology issues were discussed.
