The United States has raised India’s oil purchases from Russia as part of ongoing trade negotiations, even as Indian refiners continue to increase such imports to meet domestic demand, Bloomberg reported, citing sources familiar with the matter.
According to the report, a US delegation led by Assistant Trade Representative Brendan Lynch discussed the issue with Indian officials during talks in New Delhi on September 16. The request was described as unusual, given that a country’s relations with a third party are rarely addressed in bilateral trade discussions.
India’s Ministry of Commerce and Industry did not respond to requests for comment, while the Office of the US Trade Representative also declined to provide a statement.
The meeting came as the two sides sought to ease tensions following the imposition of a 50% tariff on India by US President Donald Trump, one of the highest in Asia. A call earlier in the week from Trump to Indian Prime Minister Narendra Modi on his birthday was seen in New Delhi as a potential opening for progress on a deal.
During the talks, Indian negotiators pressed for the removal of an additional 25% duty linked to its Russian energy imports. Officials familiar with the matter told Bloomberg that a resolution remains distant, with India characterising the extra tariffs as “unfair, unjustified and unreasonable.” New Delhi has consistently defended its reliance on Russian oil as critical for energy security.
Indian refiners have continued to ramp up Russian crude purchases in line with rising fuel demand after the monsoon season, with no government directives to scale back, the report said.
Following the September 16 discussions, both governments described the exchanges as “positive” and agreed to intensify efforts to finalise a trade deal. However, previous commitments to conclude an agreement by this autumn collapsed as positions hardened, particularly over Washington’s push for wider access to India’s dairy and farm sectors, which New Delhi remains reluctant to liberalise.