India, Feb 04 : India and the United States have concluded negotiations on a much-anticipated trade agreement, marking a significant moment in bilateral economic ties. However, ambiguity persists over one critical aspect — India’s future purchases of Russian oil.
The issue drew attention after US President Donald Trump publicly stated that India had agreed to stop importing oil from Russia as part of the understanding. According to him, New Delhi would instead expand energy purchases from the US and possibly Venezuela. Indian authorities, however, have yet to verify any such commitment, maintaining that the agreement’s final contours are still being worked out and a joint statement is expected soon.
Trump outlines his version of the understanding
In a post on Truth Social, Trump described his conversation with Prime Minister Narendra Modi and suggested that energy cooperation formed part of the broader deal.
He wrote that Modi had agreed to halt Russian oil purchases and significantly increase imports from the United States, a move Trump said could contribute to ending the ongoing war in Ukraine.
Despite the strong assertion, there has been no parallel announcement from New Delhi confirming a complete withdrawal from Russian crude. Officials familiar with the negotiations indicate that discussions are ongoing and caution against drawing conclusions before the formal text is released.
Analysts point to possible mismatch in expectations
Foreign policy observers believe Washington and New Delhi may be interpreting the commitment differently.
Lisa Curtis, Director at the Centre for a New American Security, noted that while India has been gradually reducing Russian oil intake, the Prime Minister has not publicly endorsed the sweeping pledge mentioned by Trump.
Curtis suggested that India may prefer flexibility rather than a firm timeline, partly to avoid the perception of yielding to external pressure given its longstanding strategic relationship with Moscow. At the same time, she emphasised that Indian leadership understands the importance the US places on curbing Russian energy revenues.
She described the broader trade pact as a welcome development likely to strengthen ties, adding that several factors may have accelerated negotiations. These include improving diplomatic engagement, a recent dip in India’s Russian oil imports, and New Delhi’s parallel trade progress with the European Union — developments that may have encouraged Washington to move faster.
Government says comprehensive details are forthcoming
Commerce Minister Piyush Goyal confirmed that the agreement is in its final technical phase and that complete information will be shared once both sides formalise the text.
He said the deal is expected to safeguard domestic interests while unlocking new economic opportunities, underscoring that the announcement should follow the completion of procedural steps.
Key question remains unresolved
Until the joint statement is released, uncertainty continues over the scale of India’s energy commitments. Whether New Delhi intends to fully phase out Russian oil or adopt a more calibrated reduction remains the central unanswered question surrounding the newly concluded trade pact.