Trump says India has ‘largely stopped’ buying Russian oil, hints at visiting the country next year

In a sign of easing pressure on India, US President Donald Trump said trade talks with New Delhi were going well and he could visit the country next year.

Speaking to reporters at the White House on Thursday, Trump said India had “largely stopped buying oil from Russia” and that he would visit the country in 2026 if Prime Minister Narendra Modi invites him.

Recalling memories of his last visit to India, Trump called Modi his “friend” and a “great man.”

India and US relations have been under stress in the last few months; Experts warned that the chemistry between the two leaders was lacking, leading to a rupture in India-US relations.

High tariffs, a $100,000 fee for H1B visas and Trump’s repeated claims that he brokered a ceasefire between India and Pakistan and India’s purchase of Russian crude are among the issues that have soured ties between New Delhi and Washington in recent months, experts say.

India currently faces 50% tariffs on its exports, higher than the 47% tariff imposed on China.

“Negotiations between New Delhi and Washington DC are ongoing and both sides appear optimistic that a trade deal will be reached by the end of the year, possibly even within the next few weeks,” said Alexandra Hermann, head of Southeast Asia Research at Oxford Economics.

He said the duty rate on Indian goods could be reduced to 20 percent from 50 percent currently, which would bring India to a level comparable to Asian peers such as Vietnam, Thailand or the Philippines.

Hermann added that the base tariff on India “may not fall to the 15 percent level of Japan and South Korea” due to limited scope for Russian oil purchases, agricultural imports and major investment commitments in the US.

Last month, the United States imposed sanctions on Russian oil giants Rosneft and Lukoil, which will take effect on November 21. As a result, Indian and Chinese refiners began to reduce their imports of Russian oil.

According to a Reuters Russian oil is trading at the biggest discounts to Brent in a year in Asia as major Indian and Chinese refiners reduce their purchases, according to Thursday’s report.

India’s Petroleum and Natural Gas ministry did not immediately respond to CNBC’s question about the country cutting oil imports from Russia.

“Completely eliminating Russian oil is unrealistic for India in the long term,” said Prateek Pandey, head of APAC oil and gas research at Rystad Energy, adding that “New Delhi’s ‘economy first’ approach will be tested more than ever as Russian crude becomes available at a sharper discount.”