The United States is reportedly pressing India to curtail its oil purchases from Russia as a condition for securing a trade deal. This pressure comes amid increasing scrutiny of India's energy relationship with Russia following international sanctions imposed due to the Ukraine conflict.

India, which imports nearly 90% of its oil, has found Russian crude offered at discounted prices attractive. However, the US is concerned that these purchases are helping to finance Russia's military actions in Ukraine. US Energy Secretary Chris Wright has urged India to reconsider its purchases of discounted Russian crude. He stated that the US does not want to punish India with punitive tariffs but aims to end Moscow's military actions in Ukraine. He also mentioned that India could buy oil from other nations, including the U.S.

In response to the pressure, Indian officials have conveyed to the US administration that any significant reduction in Russian oil imports would necessitate Washington's approval for crude purchases from sanctioned suppliers like Iran and Venezuela. According to a Bloomberg report, Indian representatives stressed that restricting Indian refiners' access to Russian, Iranian, and Venezuelan crude simultaneously could cause global prices to surge.

The US has already imposed a 50% tariff on Indian imports, with 25% tied to New Delhi's Russian oil trade. Scott Bessent, a Trump administration official, has criticized India for allegedly profiting from reselling Russian oil. He also accused Europe of "financing the war against them" by buying refined products made from Russian oil purchased by India.

Despite the penalties, India has continued to import crude from Russia, albeit at reduced volumes. Commerce Minister Piyush Goyal has stated India's intention to increase its purchases of American oil and gas, emphasizing that "our energy security goals will have a very high element of US involvement".

Trade talks between India and the US are ongoing, with both sides hoping to reach a mutually beneficial agreement. However, the US pressure on India to reduce its Russian oil imports remains a significant point of contention. Some analysts believe that the US is using this pressure as a negotiating tactic to gain leverage in trade discussions.

The situation is further complicated by the fact that refined products from Russian oil purchased by India are reportedly being exported to Europe. This has drawn criticism from US officials, who argue that it undermines the sanctions imposed on Russia.

Ultimately, the future of the trade deal between the US and India may depend on finding a solution that addresses US concerns about India's energy relationship with Russia while also ensuring India's energy security.