India to Halt Russian Oil Imports Post US Trade Deal, Says Trump

The recent announcement from US President Donald Trump regarding a trade deal with India has garnered significant attention. Trump stated that the United States would reduce tariffs on Indian goods from 50% to 18%. In exchange, India is expected to halt its Russian oil imports.

Key Details of the Trade Agreement

Prime Minister Narendra Modi has reportedly agreed to replace crude oil imports from Russia with supplies from Venezuela and the United States. India imports approximately 1.5 million barrels of Russian crude daily. This volume accounts for over one-third of India’s total imports, according to data from the trade analytics firm Kpler.

Trump’s Statement

On his Truth Social platform, Trump described Modi as “one of my greatest friends” and emphasized the significance of the trade agreement. He claimed that halting Russian oil purchases would contribute to ending the ongoing war in Ukraine, which has caused thousands of deaths weekly.

India’s Response

Prime Minister Modi shared his approval of the tariff reduction on social media, highlighting Trump’s leadership as crucial for global peace. However, he did not specifically confirm the cessation of Russian oil imports. The Indian government has historically defended its trade with Russia, citing energy security concerns.

Challenges of Shifting Oil Supply

Replacing Russian oil with Venezuelan supplies presents challenges. Venezuelan crude mirrors the quality of Russian oil but the country’s output has significantly dropped. The oil infrastructure in Venezuela would require substantial investment and time to restore its previous production levels, which were over 3 million barrels a day before 1999.

Industry Experts Weigh In

• Rob Haworth, Senior Investment Strategy Director at US Bank Asset Management, noted that fully replacing Russian oil would necessitate considerable investment.
• The transition might pose economic challenges for Russia in the long run.

Ongoing Relations with Russia

Despite recent discussions, Russian oil remains a significant hurdle in US-India relations. Russian President Vladimir Putin expressed his commitment to maintaining fuel supplies to India as recently as December 2025, despite US pressures.

This evolving situation highlights the complex dynamics of global trade, energy security, and international diplomacy. The outcome of this trade agreement will be closely watched as it unfolds on the international stage.