US and India at Odds Over Russian Oil Imports as Trump Claimed Modi Agreed to Halt Purchases

Strategic Insights -

Tensions between the United States and India have escalated over New Delhi's increasing reliance on Russian energy imports since the start of the war in Ukraine. US President Donald Trump has claimed that Indian Prime Minister Narendra Modi agreed to phase out Russian oil imports during a recent conversation, but the Indian government has clarified that discussions on the topic are ongoing. The US has imposed secondary sanctions on India with a 50 per cent tariff on goods from the country as a punishment for its reliance on Russian energy, putting a strain on bilateral ties.

Key Takeaways:

  • The US has imposed a 50 per cent tariff on goods from India as a punishment for its reliance on Russian energy imports.
  • The US claims that Indian Prime Minister Narendra Modi agreed to phase out Russian oil imports during a conversation with President Trump.
  • The Indian government has clarified that discussions on the topic are ongoing and no definitive decision has been announced.
  • India has become a major importer of Russian crude since the start of the war in Ukraine, importing 1.62 million barrels per day in September.
  • China remains the largest buyer of Russian energy, and the US is now ramping up pressure on Japan to stop importing Russian energy.
  • Japan has already pledged to phase out Russian oil imports as part of the G7's coordinated sanctions response to Russia's invasion of Ukraine.

Statistics:

  • 1.62 million: The number of barrels per day of Russian crude oil imported by India in September.
  • 50 per cent: The tariff imposed by the US on goods from India as a punishment for its reliance on Russian energy.
  • 2022: The year in which the war in Ukraine began and India's imports of Russian crude increased significantly.
  • 9 per cent: The percentage of Japan's total LNG imports that comes from Sakhalin Blend crude, produced from the Sakhalin-2 project in Russia's Far East.
  • 2022: The year in which Japan pledged to phase out Russian oil imports as part of the G7's coordinated sanctions response.

Sources:

  • The statement by Indian Foreign Ministry spokesperson Randhir Jaiswal, dated Thursday.
  • The statement by US Treasury Secretary Scott Bessent, dated an unspecified date.
  • A joint press conference between President Trump and Indian Prime Minister Modi, dated an unspecified date.
  • Reuters, 'Indian PM Modi to meet Trump amid worries on trade, energy' (no date given)
  • The Hindu, 'US asks Japan to stop importing Russian oil' (no date given)