Trump Pressures India, Russia Responds
US President Donald Trump revealed that Indian Prime Minister Narendra Modi has promised to stop buying oil from Russia. This commitment was conveyed directly by Modi in a private conversation with Trump on Wednesday. Although no deadline was mentioned, Trump stated that India could not stop the purchases immediately, but the process would be completed soon. This step is considered crucial by Trump in an effort to curb Russia's funding of the war in Ukraine.
To replace supplies from Russia, India is said to be ready to increase its oil purchases from the United States. According to an Indian Ministry of Commerce official, the country has the capacity to import up to $15 billion worth of oil from the US, exceeding its current annual purchases of $12–13 billion. India hopes this move will expedite a trade agreement with the US and reduce the $42.7 billion trade surplus India currently enjoys.
Trade relations between the two countries had previously been strained, particularly after Trump imposed high tariffs on Indian goods and raised the cost of H-1B work visas, which are widely used by Indian tech workers. However, in his latest statement, Trump said his relationship with Modi remains good and described him as a "great man." Modi also stated that trade talks between the two countries were showing positive progress.
Trump also emphasized the importance of keeping oil prices low as an economic priority, especially with the support of increased production from OPEC and record high production from the US. While India has not completely stopped imports from Russia, the country has offered various trade concessions, such as eliminating tariffs on US auto parts and steel, as part of ongoing negotiations. (ads)
Source: Bloomberg
