Trump Claims Modi Will Halt Russian Oil Imports — Impact on US – India Trade Relations

India’s Russian oil imports remain a key element of its energy security policy, even as global pressure mounts from the United States and Western allies.

Despite reports that India will stop buying Russian oil, officials in New Delhi insist that the country’s oil import strategy prioritizes consumer protection and economic stability.

Indian Prime Minister Narendra Modi has assured that while there is pressure to stop importingRussian crude, the focus remains on the interests of the Indian consumer.
This balancing act comes in the wake of the ongoing war in Ukraine and the potential for punitive tariffs from the Trump administration.

President Donald Trump had previously stated that India should stop buying oil from Russia, indicating that the process of transitioning away from Russian oil is a little bit of a process.
Trump told reporters that India, as a significant importer of oil and gas, needs to consider the implications of its purchases of Russian oil on its international relations.

Despite these pressures, India was buying oil from Russia at discounted rates, which has made it a major buyer of Russian crude.
As tensions rise, Modi’s government is exploring alternatives while still needing to prioritize energy prices and stability for its citizens.

In this context, the relationship between Trump and Modi will play a crucial role in shaping the future of India’s oil trade with Russia and potentially getting China involved in discussions about global oil supply dynamics.

Trump Says Modi Promised to Stop Buying Russian Oil

At the White House, US President Donald Trump claimed that Prime Minister Narendra Modi had assured him India would halt Russian crude oil imports. “Modi told me India will stop buying Russian oil — it’s a big stop,” Trump said, calling the decision crucial to cutting Moscow’s energy revenue during the Ukraine war.

However, India’s Ministry of External Affairs responded that oil import policies are driven by national interest, not foreign pressure. “Our consistent priority is to safeguard the interests of Indian consumers in a volatile global oil market,” the ministry said.

Why Russian Oil Still Powers India

India is the third-largest importer of oil and gas, with Russian oil now accounting for 35–40% of its total crude imports. Since the Ukraine invasion, Moscow has supplied India with discounted Russian crude oil, helping to control inflation and fuel prices.

Analysts from Bloomberg and Reuters note that India’s imports of Russian oil peaked at 2 million barrels per day in 2025 — saving the country billions and strengthening the petroleum refining sector.

Tariffs, Trade Pressure, and Energy Policy

The Trump administration recently reimposed tariffs on Indian exports, arguing that India’s Russian oil imports indirectly fund Russia’s war machine. India, however, insists that continuing to buy Russian oil ensures energy security and price stability amid rising global uncertainty.

India now pays for Russian crude oil in rupees, yuan, and roubles, reducing reliance on the US dollar and cushioning against Western sanctions. “We’ll see how the process goes,” Trump told reporters. “We’re working to align India and China on sanctions.”

Global Impact of India’s Russian Oil Strategy

India’s ongoing imports of Russian oil are reshaping the global oil trade. While Europe has phased out Russian crude, Asia — particularly India and China — has emerged as the dominant buyer. Indian refineries in Gujarat and Maharashtra process Russian oil and re-export diesel to Europe, quietly sustaining global supply despite sanctions.

Diversification and Energy Security Plans

Even as it continues importing Russian oil, India is investing in energy diversification — boosting imports from the Middle East, expanding natural gas infrastructure, and accelerating renewable energy programs. This approach aligns with India’s goal of energy independence while maintaining partnerships with Russia, the United States, and China.

For deeper coverage, see The Hindu and Bloomberg reports on India’s Russian oil trade.

Conclusion

India’s Russian oil strategy highlights a pragmatic, balanced energy policy. While Donald Trump’s statements fuel speculation, Narendra Modi’s government remains firm: energy security first, politics second. As tariffs, sanctions, and the Ukraine war evolve, India’s stance may define the next phase of global oil diplomacy.

India has been a significant importer of oil, often engaging in purchases of Russian oil despite international pressures. Trump claims that India will stop buying Russian oil to align with global sanctions against the Russian war machine led by Vladimir Putin.

However, the Indian Prime Minister Narendra Modi has assured that the government will prioritize the interests of the Indian consumer when making energy decisions. Buying oil from Russia has been seen as a necessary measure to ensure energy security amid fluctuating energy prices.

As the situation develops, the process is going to involve careful negotiations that may include importing less Russian crude while exploring alternatives. Trump told reporters that halting such imports is a critical step, but India would stop buying Russian oil only when it can secure reliable substitutes.

The oil trade dynamics are changing, and India must navigate punitive tariffs and potential sanctions while maintaining its energy supply. Delhi is well aware that its decisions will have implications on its oil and gas strategy moving forward and could influence its relations with both the US and Russia.