Defying U.S. pressure to scale back oil purchases from Moscow, Indian Prime Minister Narendra Modi’s government has signed a new agreement with Russia to expand and diversify bilateral trade.
Russian President Vladimir Putin said Moscow would continue providing “uninterrupted shipments” of fuel to India, a nation of more than one billion people that Western governments view as a key partner in counterbalancing Chinese and Russian influence in Asia.
“Russia is a reliable supplier of oil, gas, coal, and everything required for India’s energy development,” Putin said.
“We are ready to continue uninterrupted shipments of fuel for the fast-growing Indian economy.”
President Putin’s visit will add vigour to India-Russia ties….@KremlinRussia_E pic.twitter.com/NPUSZKAGgA
— Narendra Modi (@narendramodi) December 5, 2025
U.S. President Donald Trump—who has launched a diplomatic initiative aimed at ending Russia’s war in Ukraine—has urged India to reduce its purchases of Russian oil, arguing that the trade helps Moscow evade Western sanctions and prolong the conflict.
The Trump administration has also imposed a 25% punitive tariff on Indian goods entering the United States; overall, Indian exports now face a 50% tariff burden.
Even so, Trump has recently expressed optimism that Washington and New Delhi would be able to resolve their trade disputes and eventually reach a mutual trade agreement.
Trump says Modi assured him India will halt massive Russian oil purchases
Addressing concerns about external pressure on Russia-India relations, Putin told India Today:
“Neither I nor Prime Minister Modi has ever, despite pressure, used our collaboration to act against anyone. India and Russia do not cause harm to others, and we want other countries to take note of this.”
Bilateral trade between India and Russia reached approximately $69 billion in 2024–2025, though Indian exports accounted for less than $5 billion of that total.
Putin received a lavish welcome during his visit to India, including a 21-gun salute, a guard of honor, and an embrace from Modi upon arrival.
Today’s 23rd India-Russia Annual Summit was an opportunity to comprehensively discuss diverse aspects of India-Russia cooperation. We have agreed on an Economic Cooperation Programme till 2030 in order to diversify our trade and investment linkages. We talked about improving… pic.twitter.com/MIrPMUd6xK
— Narendra Modi (@narendramodi) December 5, 2025
India—one of the world’s largest consumers of crude oil—has sharply increased its purchases of Russian fuel since the Ukraine war began with Russia’s invasion in February 2022.
According to U.S. Secretary of Commerce Howard Lutnick, India sourced only about 1% of its oil from Russia before the conflict.
Today, that share has surged to 40%, driven by sanctions that allow India to buy Russian crude at discounted rates reportedly $7–$10 per barrel below market prices. India then refines much of this crude and exports the finished products globally. Lutnick noted in September.
US says India must curb Russian oil purchases if it wats a trade deal
India has reportedly saved India billions of dollars through Russian oil trade.
Washington has also imposed sanctions on Russian energy giants Rosneft and Lukoil as part of its broader effort to pressure Putin into negotiating an end to the war.
U.S. diplomats continue to engage with Russian and Ukrainian officials in hopes of brokering a settlement acceptable to all parties
Kiran Asim is a writer who covers the U.S., Europe, South Asia, and the Middle East. Her reports and analyses look at the geostrategic issues and contemporary developments and their economic and political implications. She also writes about society and education.
