🔗 Share this article

Indian authorities have expressed skepticism regarding claims made by Donald Trump that PM Modi had agreed to stop buying Russian crude oil.

The US President's Statements and India's Reaction

On Wednesday, Donald Trump stated that Modi had assured him “this very day” that India would put an end to its acquisition of Russian oil.

“I was not happy that the Indian administration was purchasing crude, and he [Modi] has guaranteed me today that they will not be buying oil from Russia. You know, it cannot happen instantly. It’s a little bit of a process, but the process is going to be over with soon,” the former president told reporters.

Nevertheless, in a media conference on the following day, Indian officials appeared to undermine the US president’s account, stating that there was “no telephonic conversation between Prime Minister Modi and US President Trump yesterday”.

Background of India-Russia Relations and Crude Purchases

The South Asian nation, which maintains a close ties with the Russian government, has become one of the largest buyers of Russian oil since the military action of Ukraine.

It has been a significant source of contention with the United States in the past few months, since the US president failed to secure a peace deal with Moscow.

• In August, the US president imposed some of his highest tariffs on India to penalise its procurement of Russian oil.
• He accused the Indian government of contributing funds to Moscow's military actions in the conflict zone.
• India is subject to extra import duties of 25%, in addition to a standard of 25%.

New Delhi's Position and Oil Strategy

The Indian administration has consistently maintained its position, claiming it would not allow the US dictate its energy needs or interfere in its relationship with Russia, which dates back to the Cold War era.

Moscow remains the largest supplier of arms to the Indian armed forces.

Just before Trump's remarks, the Indian government said discussions with the United States over commerce and import duties were ongoing.

A statement by the foreign ministry said the priority was to “safeguard the well-being of the citizens of India in a unstable fuel market” and that all strategies were dictated by the imperative to diversify and secure India’s energy sources.

Benefits and Repercussions

The Indian economy has gained substantial advantages from its acquisition of discounted crude from Russia since Moscow’s full-scale invasion of Ukraine in February 2022, becoming one of its leading buyers globally, second only to the Chinese market.

Nonetheless, it has led to a severe deterioration in US-India relations.

US administration has frequently alleged Indian leadership of bankrolling the Russian president, President Putin's actions against the Ukrainian state, labeling the war as “Modi’s war”.

Yet, on that same day the US president praised enthusiastically of Modi. “The PM is an exceptional leader. He has affection for me,” he said.