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Trump announces trade deal with India, says Modi agreed to halt Russian oil imports

Trump announces trade deal with India, says Modi agreed to halt Russian oil imports

 

By Our Correspondents

 

WASHINGTON/NEW DELHI - US President Donald Trump said on Monday that India had agreed to halt purchases of Russian oil and sharply expand energy imports from the US, announcing what he described as a sweeping trade and energy deal between the two countries.

 

The announcement, made through his Truth Social platform, Trump said he had spoken with Indian Prime Minister Narendra Modi and that the Indian leader had “agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela.”

 

"He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," he said.

 

Trump framed the purported agreement as a decisive step to help “END THE WAR” in Ukraine by cutting off a key source of revenue for Moscow.

 

If implemented, such a shift would represent a major realignment of global energy flows and a significant blow to Russia, which has relied heavily on discounted crude sales to India since its war with Ukraine.

 

According to Trump, the proposed agreement includes several key elements, including India would halt its large-scale purchases of discounted Russian crude and redirect imports toward the United States and Venezuela. 

 

He added that US tariffs on Indian goods would be reduced from 25% to 18%, while India would eliminate tariffs and non-tariff barriers on American products

 

Trump said Modi had pledged to significantly increase Indian purchases of US energy, technology, agricultural products and coal, valuing the commitment at “over $500 billion.”

 

- Political backlash in India

The announcement triggered an immediate response from India’s main opposition party, the Indian National Congress, which questioned both the substance of the claims and the manner in which they were made.

 

Senior Congress leader Jairam Ramesh wrote on X that Trump appeared to be announcing major Indian policy decisions from Washington without confirmation from New Delhi.

 

“He announced the halt of Op Sindoor from Washington. He announced updates on India’s oil purchases from Russia and Venezuela in Washington. He has now announced an India-U.S. trade deal from Washington,” Ramesh wrote. “President Trump clearly seems to have some leverage over Prime Minister Modi.”

 

Ramesh suggested the agreement undermined India’s strategic autonomy, concluding with a reference to a well-known Bollywood villain: “In Washington, clearly Mogambo khush hai.”

 

- Unanswered questions

 

Key details of the agreement remain unclear, including timelines for any reduction in Russian oil imports, the legal basis for tariff changes, and the enforceability of the purchase commitments.

 

Energy analysts note that India has emerged as one of the largest buyers of Russian seaborne crude, providing Moscow with a crucial financial lifeline. Any abrupt halt could disrupt global oil markets and force Russia to seek alternative buyers at deeper discounts.

 

Modi, in his social media post, did not address Trump’s claim that India would halt Russian oil imports, instead thanking the US president for announcing reduced tariffs under the trade deal, a stance that could strain ties with Moscow, one of New Delhi’s longstanding strategic partners.

 

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