A major diplomatic discussion has erupted this week involving India, the United States, and Russia. After US President Donald Trump announced a new trade deal with India—claiming Prime Minister Narendra Modi agreed to stop buying Russian oil—the Kremlin (Russia’s government) has issued a calm but firm response.
This situation creates a complex moment for India’s foreign policy, as New Delhi tries to balance its old friendship with Moscow and its growing trade ties with Washington.
Here is a simple breakdown of what Trump claimed, how Vladimir Putin’s team responded, and what this actually means for India’s economy.
What Did Donald Trump Claim?
Earlier this week, President Donald Trump announced a “breakthrough” trade agreement with India. According to Trump, the US has agreed to slash tariffs (taxes) on Indian goods from 50% down to 18%.
However, Trump stated there was a big condition attached to this benefit. He claimed that PM Modi promised to stop purchasing crude oil from Russia. Instead, India would reportedly switch to buying oil from the United States and potentially Venezuela. Trump framed this as a move to cut off funding for Vladimir Putin’s war efforts in Ukraine.
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Russia’s Official Reaction: “No Official Word”
The response from Russia came quickly but was notably non-aggressive. Dmitry Peskov, the spokesperson for President Vladimir Putin, addressed the media on Wednesday.
The Kremlin made two key points:
- India is Sovereign: Russia stated that India is a powerful, independent nation that decides its own policies. They emphasized that India is “free to buy oil from any country” it chooses to ensure its own energy security.
- No Notification: Crucially, Moscow confirmed they have not received any official communication from New Delhi about stopping oil imports. As far as Russia is concerned, business continues as usual until India says otherwise.
Russian Foreign Ministry spokesperson Maria Zakharova added that the energy trade between India and Russia benefits both countries, hinting that stopping it would hurt India as much as Russia.
The Technical Problem: Why Switching is Hard
Experts are pointing out that even if India wanted to swap Russian oil for US oil immediately, it is not technically simple.
- Heavy vs. Light Crude: Russian oil (like ‘Urals’) is mostly “heavy” and “sour” crude. Many Indian refineries are specifically built to process this type of oil.
- US Oil is Different: Oil from the US is typically “light” and “sweet.”
- The Cost Factor: To use US oil, Indian refineries would need to blend it with other types, which costs more money. Simply replacing Russian oil overnight could make petrol and diesel more expensive for Indian citizens.
Russian energy analysts noted that the US cannot easily match the huge volume (1.5 to 2 million barrels per day) that Russia currently ships to India.
India’s Diplomatic Tightrope
This incident highlights the tough position India faces in 2026.
- On one side: India wants cheaper exports to the US (a massive market for Indian IT, textiles, and gems). The tariff cut offered by Trump is a huge economic win.
- On the other side: India relies on discounted Russian oil to keep inflation low. Cutting ties with Russia could spike fuel prices at home and damage a decades-old strategic partnership.
Indian Trade Minister Piyush Goyal recently stated that India will “diversify” its energy sources to stay safe, but he stopped short of confirming a total ban on Russian oil.
What Happens Next?
The world is now waiting for an official statement from the Indian Ministry of External Affairs (MEA) or the Prime Minister’s Office (PMO) to clarify the specifics of the deal with Trump.
If India actually stops buying Russian oil, it would be a historic shift in foreign policy. If India continues buying it, it risks upsetting the US administration. For now, Russian tankers are still sailing toward Indian ports, and the “deal” details remain slightly unclear.
Frequently Asked Questions (FAQs)
1. Did India officially agree to stop buying Russian oil?
The Indian government has not explicitly confirmed a “ban” on Russian oil yet. While Trump announced it, Indian officials have only said they will “diversify” (buy from many sources) energy supplies.
2. Why does India buy oil from Russia?
Since the Ukraine conflict began, Russia has offered oil to India at deep discounts. This helps India keep petrol and diesel prices lower for its citizens compared to buying expensive oil from the Middle East.
3. How did Putin react to the news?
President Putin’s spokesperson said they respect India’s right to choose its partners but confirmed they have not been told that trade is stopping. They do not seem panicked yet.
4. Can India buy oil from Venezuela instead?
Yes, it is possible. Trump suggested India could buy from Venezuela (which has heavy oil similar to Russia). However, restarting massive imports from Venezuela will take time and logistics planning.
5. Will this affect petrol prices in India?
If India stops buying discounted Russian oil and switches to more expensive US oil, domestic fuel prices could potentially go up unless the government subsidizes the cost.