Moscow has shrugged off suggestions that India is ditching Russian oil as part of a new trade agreement with the United States, stressing New Delhis freedom to shop around for energy. The Kremlins relaxed tone comes amid President Trumps announcement of a deal aimed at boosting US exports and curbing reliance on sanctioned Russian crude.

President Donald Trump revealed the trade pact following a call with Prime Minister Narendra Modi, claiming India agreed to stop importing Russian oil and pivot toward American or even Venezuelan supplies. This move ties into broader US efforts to enforce sanctions on Russia post-Ukraine invasion, with tariffs on India now slashed to 18% as a sweetener. Kremlin spokesman Dmitry Peskov downplayed any shift, pointing out Indias long history of sourcing oil globally. New Delhi is free to buy from anyone—Russias just one option among many, he noted, signaling no panic over potential lost volumes. India stayed mum on the specifics but has consistently prioritized cheap energy to fuel its growth, turning Russia into its top supplier after discounts kicked in back in 2022.

Major Indian refiner Reliance Industries recently paused some Russian crude imports, likely to sidestep tightening EU rules and US penalties on entities like Rosneft. Still, overall Russian flows remain strong at over 40% of Indias total, helping keep inflation in check amid volatile prices. Diversification is key here—Indias boosted buys from Saudi Arabia and Iraq while tweaking Russian volumes. This flexibility saved billions last year; a full cutoff seems improbable without major disruptions. For instance, October data showed a 13% dip from sanctioned Russian sellers but spikes elsewhere.

The episode underscores a fragmented oil market where sanction hawks like the US clash with pragmatic buyers. China pulled similar moves earlier, snapping up discounted barrels despite pressure. Looking ahead, eyes are on February import figures—if they hold firm, Russias business as usual stance wins out. Longer term, India may lean into US LNG deals and green energy, but cost trumps politics for now. This balancing act defines emerging economies navigating great-power games.

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