Photo: FRANCIS CHUNG / EPA

U.S. President Donald Trump announced that he had reached an agreement with Indian Prime Minister Narendra Modi for India to stop purchasing Russian oil.

"We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now," Trump wrote on Truth Social on Monday after speaking with Modi.

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As part of the agreement, the U.S. reduced its reciprocal tariff on Indian goods from 25% to 18%, and India committed to gradually reduce its tariffs and non-tariff barriers on U.S. products to zero.

"The Prime Minister also committed to "BUY AMERICAN," at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products," Trump added.

Indian Oil Minister Hardeep Puri said last week that oil supplies from Russia had already fallen to 1.3 million barrels per day, down from an average of 1.8 million barrels per day in 2025.

According to a Financial Times source, the price of certain batches of Russian oil supplied to India has fallen to $22–25 per barrel on FOB terms (delivered to the port of shipment), which barely covers the breakeven point for Russia.

  • In August 2025, Trump imposed an additional 25% duty on India as a penalty for purchasing Russian oil, bringing the total rate to 50%.
  • In early January, Trump said that the U.S. might impose new duties on India if it did not limit its purchases of Russian oil.