US Trade Representative Jamieson Greer has said that India is already taking steps to reduce its reliance on Russian oil. Speaking at the Economic Club of New York, Greer claimed that Russian crude was never “a bedrock part of the Indian economy” and that New Delhi could cut back on imports without hurting its growth.
US says India already diversifying energy imports beyond Moscow
According to Greer, India’s dramatic rise in Russian oil purchases came only after the Ukraine war began in 2022 and should be seen as a short-term measure, not a long-term strategy. “India has not always bought so much Russian oil,” Greer said. “They’ve always had ties with Moscow, but this scale of buying began recently, for consumption, refining, and resale. I can already see them starting to diversify. They get it. India is a sovereign country and controls its own decisions.”
Greer added that the Trump administration is not ordering India to break ties with Russia, but is urging countries to avoid steps that help Moscow fund its war in Ukraine. “President Trump is focused on this quite discrete issue of ending the Russia-Ukraine war. We’re not trying to dictate to other countries who they can have relations with and who they can’t,” Greer continued. He added that Washington’s focus is on making Russian President Vladimir Putin feel “as much pressure as possible.”
Russian President Vladimir Putin, however, has dismissed the idea that India will bow to US demands. Speaking at the Valdai plenary session, he said, “India will never allow itself to be humiliated by anyone. I know PM Modi, he will also not make any such decisions.”
Putin also suggested that Russia could increase imports of agricultural products and medicines from India to offset the impact of American tariffs. “The losses faced by India due to punitive US tariffs would be balanced by crude imports from Russia,” he added.
Trade talks in the “Nitty Gritty” stage
India is currently facing one of the world’s steepest tariffs from the US, a 50% duty on certain exports. Half of it comes from reciprocal tariffs, while the other half is because of India’s continued purchase of Russian oil. This high tariff is affecting important industries such as textiles, gems and jewellery, and seafood. Beyond the energy question, trade remains a core issue. Greer said India has been “pragmatic” in its approach and is actively working with US negotiators. He met Commerce Minister Piyush Goyal in September during the UN General Assembly in New York to discuss tariffs and market access.
Meanwhile, Sergio Gor, who is expected to be the next US Ambassador to India, hinted that negotiations are in the final stretch, calling them the “nitty gritty” stage. US officials say a resolution could be announced soon.
In 2024, India-US trade in goods and services reached $212.3 billion. India also enjoys a healthy trade surplus of around $40–45 billion. The Trump administration has signalled it wants to narrow that gap but continues to see India as a crucial economic and strategic partner.