Russia Reaffirms Strategic Ties With India After Trump's Oil Remarks

Russia Says ‘No Word’ From India on Halting Oil Trade After Trump Claim

The US President Donald Trump announced a major trade deal with India on 2 February 2026, which cuts down taxes on Indian goods to a flat 18%. These new rules replace the 50% ‘punitive’ taxes that hurt Indian businesses during late 2025.

Prime Minister Modi said the deal is a big win for Indian products, but there is a catch. President Trump claims that India promised to stop buying all Russian oil.

Decoding the 18% Tariff Reset

This agreement ends a difficult trade war between the two countries, as in the past, the US charged high taxes owing to India’s energy deals with Russia. The new 18% rate helps Indian sellers of jewelry, clothing, and seafood.

“Delighted that Made in India products will now have a reduced tariff of 18%,” Prime Minister Narendra Modi posted on X. He said this partnership “unlocks immense opportunities” for both nations.

India plans to buy over $500 billion in American goods, including technology, crops, and energy. These massive purchases are meant to balance the trade relationship. The goal is to make sure the US does not lose money while trading with India.

Will Your Petrol Prices Skyrocket?

Exporters are happy about the lower taxes, but there is a hidden problem. India has been buying cheap oil from Russia for years. Russian oil is often $10 to $20 cheaper than the global price. Consequently, if India stops buying from Russia, it must buy more expensive oil from the US or Venezuela. This could cost India an extra $9 billion to $12 billion every year.

This change might make gas prices in India rise by Rs. 3 to Rs. 7 per liter. Experts say the government may have to help pay for this to keep prices low for drivers. The Hindu mentioned that "if in the future prices go back up to $80-90 a barrel, then the lack of this Russian discount could start pinching the Indian government." Indian oil factories will also have to change their machines to process different types of oil, which will add even more costs to the system.

On the other hand, Russia says it has received “no word” from India about stopping oil shipments yet. This suggests that India might stop buying Russian oil slowly rather than all at once. The next six months will be a test for the Indian economy. The success of this deal depends on whether selling more clothes and phones can cover the rising cost of fuel for the public.