Will India Stop Buying Oil From Russia?

The Interim Trade Framework, proposed between India and the US in early February has become the turning point in India-Russia trade relations. Internet speculations about an evident strain in the relationship, the Modi-Putin duo have strengthened the narrative. But what does the Interim Trade Framework officially state and demand?

Background

In mid 2025, US President Donald Trump imposed unjustified, steep tariffs on Indian imports, escalating tensions between the two countries. An additional 25% “penalty” tariff specifically linked to India’s purchases of Russian oil was slapped on India, which was a move not previously seen in U.S. trade policy.

The punitive tariff was part of wider protectionist measures from the Trump administration and was criticized in India as unjustified and uneven, especially since larger buyers of Russian crude, such as China, were not similarly targeted.

Interim Trade Framework (Feb 2026)

1. Tariff Reset

In early February 2026, the U.S. and India announced an interim trade framework aimed at de-escalating tensions and moving toward a full bilateral trade agreement.

Key tariff outcomes under this interim deal include:

The additional 25% tariff linked to Russian oil purchases has been rescinded.
U.S. tariffs on Indian goods will now be approximately 18% overall, down from combined rates that reached as high as 50% during the dispute.
Certain tariffs may be phased out further as negotiations progress.

2. U.S. Claims on Russian Oil

President Trump has publicly stated that India committed to stop importing Russian oil, both directly and indirectly, and that this was a key factor behind the tariff rollback.

However:

The interim agreement text did not explicitly mention Russian oil imports, and Indian officials have clarified that India retains strategic autonomy over energy sourcing decisions.
Some analysts point out that the U.S. executive order linking tariffs to oil imports also includes mechanisms to track Indian oil imports, with a possibility of reimposing tariffs if India resumes significant Russian oil purchases.

3. Other Trade Provisions

India has agreed to reduce or eliminate tariffs on a range of U.S. industrial and agricultural goods.
The deal reportedly includes goals such as $500 billion in bilateral commerce over the next five years, potentially including U.S. energy products, technology, and farm exports.

Russia's Reaction

The Russian Government has made no official statements expressing its views on the Interim Trade Framework and the supposed reduction in Russian oil volumes. Russian officials have emphasized that energy ties with India continue strongly and that India remains a key market for Russian crude.