Why India Breathes Easy Following Alaska Summit – Inside Trump’s Oil Bargain With Putin | World News

New Delhi: A high-stakes summit in Alaska on August 15 has given India a breather. US President Donald Trump and Russian President Vladimir Putin walked out of talks with a decision that could spare Indian exports from steep new tariffs.

Roman Babushkin, Chargé d’Affaires at the Russian Embassy in New Delhi, confirmed that the White House may hold back on a 25 per cent penalty linked to India’s oil trade with Moscow.

“The positive outcomes of President Putin’s visit to the United States last week are that, according to reports, President Trump has decided not to impose additional tariffs on India. Whatever happens globally, we are capable of resolving them for the mutual satisfaction with India, and we will continue our partnership despite external threats,” he told journalists on August 20.

Trump had hinted at this change even before sitting down with Putin. He spoke about it aboard Air Force One during an interview with Fox News.

“Well, he (Russian President Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot…And if I did what is called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I will do it. Maybe I won’t have to do it,” he said.

The White House later tied these measures directly to the war in Ukraine. On August 20, press secretary Karoline Leavitt explained that Trump used tariffs on India as leverage against Russia.

“President Trump has taken decisive steps to bring this war to a close, including sanctions on India and other measures. He has made it clear that he wants to see the war end swiftly and does not support delaying meetings or negotiations,” she told reporters.

That same day, Trump met Ukraine’s President Volodymyr Zelensky at the White House.

While briefing in New Delhi, Babushkin also assured that Russia’s pending S-400 missile system delivery would follow schedule.

Russia Pushes Discounted Oil To India

Evgeniy Griva, deputy trade representative of Russia to India, revealed that Moscow is offering a 5 per cent discount on crude oil supplies.

“There will be a 5 per cent discount, subject to negotiation, on Russian crude oil purchases to India. Despite the political situation, approximately the same level of oil will be imported by India. As for discounts, it is a commercial secret. I think, because it is usually just dialogue between businessmen and approximately usually 5%. It is fluctuating, but usually it is plus-minus 5%,” Griva said.

Babushkin joined him in reinforcing trust. “It is a challenging situation for New Delhi. We have trust in our ties. We are confident that India-Russia energy cooperation will continue notwithstanding the external pressure,” he said.

The United States, however, accused India of helping Russia fund its war through crude purchases. White House Trade Adviser Peter Navarro claimed, “India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs.”

India dismissed the penalties as “unfair, unjustified and unreasonable”. Prime Minister Narendra Modi declared New Delhi would not bend to such pressure.

Leavitt later highlighted Trump’s intent: “Look, the president has put tremendous public pressure to bring this war to a close. He has taken actions, as you have seen, sanctions on India and other actions as well. He has made himself very clear that he wants to see this war end, and he has scoffed at the ideas of others that have been raised that we should wait another month before any meeting takes place.”

Russia Extends Trade Hand To India

“If Indian goods are facing difficulties entering the US market, the Russian market is welcoming Indian exports,” Babushkin told the press on August 20.

He warned that “unilateral decisions will lead to disruptions in supply chains” and harm energy security worldwide. He called Western pressure “neocolonial behaviour” and added, “Hypothetically, if India refuses Russian oil, it will not lead to equal cooperation with the West in general because it is not in the Western nature, which was clearly demonstrated in recent years.”

Russia, he said, had a “very, very special mechanism” to keep supplies flowing to India. “If the West criticises you, it means you are doing everything right. We do not expect that to happen (India to stop buying oil). We know about the challenging circumstances for India. Whatever happens, even during challenges, we are committed to removing any problems…The recent phone call by President Putin to PM Modi ji, explaining and sharing the information about recent developments in Ukraine, means India matters a lot to Russia. We are capable of finding any solution for mutual satisfaction. The deepening of our partnership will help us grow together,” he added.

He also confirmed that President Putin plans to visit India before year’s end to meet Prime Minister Modi.

Trade Tensions With Washington

Trump slapped India with a 25 per cent base tariff and an additional 25 per cent for Russian oil imports earlier this month. He later said the move was part of his bargaining strategy with Putin.

New Delhi called the step “unjustified and unreasonable”. Trade talks set for August 25 now stand postponed.

China, another top buyer of Russian oil, has not faced the same penalties.

Last month, the European Union sanctioned Nayara Energy, a Russian-backed Indian refinery, forcing it to scale down processing.

Still, Evgeniy Griva said India-Russia trade is on track to grow 10 per cent each year.