'Trade with New Delhi only after...': Top US official warns India over Russian crude
Lutnick criticized India’s sharp increase in Russian oil imports since the start of the Ukraine war. “Before the war, 1% of their oil was from Russia. Now it’s 40%,” he claimed, adding that India profits by refining and reselling Russian crude.
- Sep 12, 2025,
- Updated Sep 12, 2025 6:51 AM IST
The U.S. has tied a potential trade deal with India to two non-negotiables: an end to Russian oil imports and wider market access for American businesses, according to U.S. Commerce Secretary Howard Lutnick.
Speaking to CNBC on Thursday, Lutnick said Washington will “sort out” trade ties with New Delhi — but only after India changes its energy strategy and opens its economy further. “India basically has to open their market, has to stop buying Russian oil,” he said.
Lutnick criticized India’s sharp increase in Russian oil imports since the start of the Ukraine war. “Before the war, 1% of their oil was from Russia. Now it’s 40%,” he claimed, adding that India profits by refining and reselling Russian crude. “They’re buying it, refining it, and then selling it to the rest of the world and making a bundle.”
The comments come as trade tensions between the two countries appear to ease, despite ongoing friction. President Donald Trump said that trade talks are progressing. “There will be no difficulty in coming to a successful conclusion,” Trump posted on social media, calling Indian Prime Minister Narendra Modi a “very good friend.”
Modi responded by emphasizing the nations’ shared interests. “India and the United States are natural partners,” he posted on X, expressing confidence that negotiations would “unlock the limitless potential” of bilateral ties.
Speaking at a press conference in Patna, Union Minister Piyush Goyal said the prime minister and Trump had jointly directed their respective teams in February 2025 to finalize the first phase of a trade agreement by November this year. “Since March, discussions have been taking place in a serious and positive environment. Both sides are making good progress and are satisfied with the direction of the talks,” Goyal said.
In a separate Bloomberg interview last week, Lutnick predicted India would soon return to the table. “In a month or two… they’re going to say they’re sorry and they’re going to try to make a deal with Donald Trump,” he said.
The U.S. has tied a potential trade deal with India to two non-negotiables: an end to Russian oil imports and wider market access for American businesses, according to U.S. Commerce Secretary Howard Lutnick.
Speaking to CNBC on Thursday, Lutnick said Washington will “sort out” trade ties with New Delhi — but only after India changes its energy strategy and opens its economy further. “India basically has to open their market, has to stop buying Russian oil,” he said.
Lutnick criticized India’s sharp increase in Russian oil imports since the start of the Ukraine war. “Before the war, 1% of their oil was from Russia. Now it’s 40%,” he claimed, adding that India profits by refining and reselling Russian crude. “They’re buying it, refining it, and then selling it to the rest of the world and making a bundle.”
The comments come as trade tensions between the two countries appear to ease, despite ongoing friction. President Donald Trump said that trade talks are progressing. “There will be no difficulty in coming to a successful conclusion,” Trump posted on social media, calling Indian Prime Minister Narendra Modi a “very good friend.”
Modi responded by emphasizing the nations’ shared interests. “India and the United States are natural partners,” he posted on X, expressing confidence that negotiations would “unlock the limitless potential” of bilateral ties.
Speaking at a press conference in Patna, Union Minister Piyush Goyal said the prime minister and Trump had jointly directed their respective teams in February 2025 to finalize the first phase of a trade agreement by November this year. “Since March, discussions have been taking place in a serious and positive environment. Both sides are making good progress and are satisfied with the direction of the talks,” Goyal said.
In a separate Bloomberg interview last week, Lutnick predicted India would soon return to the table. “In a month or two… they’re going to say they’re sorry and they’re going to try to make a deal with Donald Trump,” he said.