Modi, the Prime Minister of India, claims to have had a productive discussion with Putin.
In a recent conversation, Indian Prime Minister Narendra Modi and Russian President Vladimir Putin discussed ways to strengthen their bilateral ties, despite the international pressure on India to find alternative suppliers for crude oil [1]. As one of the world's largest crude oil importers, India is under significant strain to diversify its sources, a challenge exacerbated by the escalating U.S. tariffs on Indian goods [2].
The U.S., as part of its sanctions framework against Russia amid the Ukraine conflict, has threatened to impose new import tariffs of 50% on Indian goods, up from the current 25%, if India fails to find alternative suppliers [3]. However, India continues to import substantial amounts of Russian crude oil, accounting for about 44% of its total crude intake as of June 2025 [3]. This strategy reflects a delicate balance between managing geopolitical pressures and ensuring energy security needs [1][3].
Negotiations between India and the U.S. have thus far not resulted in a trade deal framework that would alleviate tariff impositions [2]. India views these tariffs as unfair and bases its oil import decisions on market dynamics and energy security imperatives rather than political considerations [3]. In response to these pressures, India is actively increasing its oil imports from Gulf countries like Saudi Arabia, UAE, and Iraq to reduce overreliance on Russia [3].
The economic costs for India could be substantial, as high U.S. tariffs would raise the cost of Indian exports to the U.S., potentially damaging trade relations and India's export competitiveness [2]. However, the continued purchase of discounted Russian crude oil helps keep domestic fuel prices relatively stable [4].
The U.S. aims to intensify economic pressure on Russia by targeting its key customers, with India caught between maintaining energy supplies and managing diplomatic fallout [2][3]. The Kremlin has criticized such calls to "force countries to sever trading relations" with Russia as "illegitimate" [5].
The warm ties between India and Russia date back to the Soviet era and have remained strong. In fact, Russia is one of India's top arms suppliers [6]. Putin last visited India in December 2021, and Modi has expressed his intention to host President Putin in India later this year [7].
In a social media post, Modi thanked Putin for sharing the latest developments on Ukraine during their conversation [8]. The oil purchases from Russia are a key source of revenue for Moscow's war in Ukraine [9]. Despite the pressure, the Kremlin did not directly mention U.S. President Trump in its criticism [5].
In summary, despite the escalating U.S. secondary tariff threats, India continues to negotiate and adapt its oil import strategy by sustaining substantial Russian oil purchases while gradually diversifying suppliers to navigate economic and geopolitical pressures. This delicate dance between energy security, diplomatic relations, and economic considerations underscores the complexities of the global oil trade.
In the face of ongoing international pressure, politics and policy-and-legislation play significant roles as the U.S. threatens India with increased tariffs on goods, including a potential hike from 25% to 50%, if India continues to import large amounts of Russian crude oil [2][3]. Amid these conflicts, Indian decision-makers prioritize managing geopolitical pressures and ensuring energy security needs, hence engage in war-and-conflicts-related discussions with leaders like Putin, while also diversifying their oil import sources to include Gulf countries [1][3]. General news outlets continue to monitor these events to keep the public informed about the intricate dynamics of the global oil trade and the implications for each nation's economy.
