India is unlikely to bow to Washington’s pressure to halt its purchase of Russian crude, even as bilateral trade talks with the US face turbulence, top government sources have said.
Despite repeated warnings from the US linking tariffs to energy imports from Moscow, New Delhi maintains that Russian oil remains outside the ambit of sanctions and offers a cost advantage. “The Indian government may not stop buying oil from Russia as long as it is being offered at a good price. Also, Russian oil is not a sanctioned commodity, so there is no compulsion on India to stop,” a source tracking the matter said.
At the same time, India is exploring ways to strengthen ties with other partners, including the BRICS grouping, often targeted by US President Donald Trump in his criticism.
To balance the equation, New Delhi is also open to sourcing more energy from the US, but only if the pricing proves viable. “India is definitely open to buying much more energy from the US as a sign of goodwill. But we do need to look at the costs involved as we have resource constraints,” the source added.
Trade Talks in Limbo
The impasse on Russian oil imports is deepening the rift in ongoing negotiations for an India-US Bilateral Trade Agreement (BTA). Washington has indicated it will not reconsider the steep 50 per cent tariffs imposed on Indian goods until the issue is resolved.
“There is no date for the next negotiating round for the BTA after the last round took place in July this year, following which tariffs were imposed on India. Commerce & Industry Minister Piyush Goyal met US Trade Representative Jamieson Greer in New York last week to push the BTA negotiations, but a date for the sixth round is yet awaited,” the source said.
Notably, Goyal did not hold talks with US Commerce Secretary Howard Lutnick, one of the key figures on the American side of the BTA negotiations, during his visit. Lutnick recently warned that countries like India and Brazil “needed fixing” and must “play ball” with the US President if they wished to retain access to the American market.
India Reaffirms BRICS Ties
Underscoring its intent to preserve old alliances, External Affairs Minister S. Jaishankar convened a meeting of BRICS Foreign Ministers in New York on Saturday. “In a turbulent world, BRICS must reinforce the message of peacebuilding, dialogue, diplomacy and adherence to international law,” Jaishankar posted on X.