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Washington’s trade deal with India hinges on Russian oil imports

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The ongoing negotiations between Washington and New Delhi for a trade agreement have entered a contentious phase, as US officials continue to link the deal’s success with India’s energy ties to Moscow. The latest remarks by US Commerce Secretary Howard Lutnick underscore the growing friction in what has otherwise been touted as one of the most important bilateral partnerships in the world.

Speaking to CNBC on September 11, Lutnick said the United States would “sort out” a trade deal with India once New Delhi opens its market and halts imports of Russian crude oil. His comments follow repeated American criticisms of India’s energy policies since Russia’s war in Ukraine began in 2022, and they highlight Washington’s determination to make energy politics a central bargaining chip in trade talks.

Russia has emerged as India’s largest crude oil supplier since 2022, accounting for nearly 40 percent of its imports. India, the world’s third-largest oil consumer, has defended these purchases as a matter of energy security and affordability. Buying discounted Russian crude has allowed New Delhi to stabilize its domestic energy costs while simultaneously boosting profits through its refined petroleum exports, especially to Europe.

Lutnick criticized this practice, claiming that India had not purchased Russian oil in significant volumes before the war in Ukraine and was now........

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