US President Donald Trump claimed that Prime Minister Narendra Modi has assured him India would stop buying oil from Russia, months after relations between New Delhi and Washington soured over Moscow oil purchases.

"So I was not happy that India was buying oil, and Modi assured me today that they will not be buying oil from Russia," Trump said. India could not "immediately" halt shipments, calling it "a little bit of a process, but that process will be over soon." He added.

Following the statement by Trump, oil prices rose by around one percent in early trade on Thursday. Brent crude futures rose 57 cents, or 0.9 percent, to $62.48 a barrel at 0046 GMT. U.S. West Texas Intermediate (WTI) futures also added 0.9 percent, or 54 cents, to trade at $58.81.

At present, India and China are the two top buyers of Russian seaborne crude exports, taking advantage of the discounted prices Russia has been forced to accept after European buyers shunned purchases and the U.S. and the European Union imposed sanctions on Moscow for its invasion of Ukraine in February 2022.

US-Indian relations have been strained since Trump imposed a 50 percent tariff on goods from the South Asian nation, a move by the US president for New Delhi’s purchases of Russian crude. Ties worsened after Trump moved to impose a $100,000 fee on new applications for H-1B visas, which are mostly used by Indian tech workers to obtain positions in the US.

Also Read: India, South Korea to Explore Joint Initiatives in Sectors

India has the capacity to purchase an additional $15 billion of oil from the US, Trade Secretary Rajesh Agrawal, who is leading India's renewed trade negotiations with the US, said on Wednesday.

Data over the last few years shows that energy purchases from the US have gone up, India’s Trade Secretary Rajesh Agrawal told reporters in New Delhi.

Also Read: US and Europe to Engage in Billions of Trade with Russia

“Right now we are at an average of $12-$13 billion as per FY25 figures and there is headroom for $14-$15 billion” more with the current refinery configuration, he said.

Also Read: Everything Business Leaders Should Know About GST Reforms

India’s trade deficit widened to the highest in more than a year in September to $32.15 billion, but exports rose 6.7 percent from a year ago despite the US imposing its steepest tariffs in Asia on Indian goods

 

.