India Cuts Russian Oil Imports, Paving Way for US Trade Deal?

• India, the world's third-largest oil importer, has significantly reduced its crude oil purchases from Russia, shifting towards the US and Middle East.
• This change follows US pressure, including tariffs imposed by the Trump administration, aimed at decreasing India's reliance on Russian oil.
• Russian oil's share in India's imports, which peaked at 36-39% in 2023, dropped to around 25% by December 2025 and 1.3 mb/d by January 2026.
• The reduction in Russian oil imports is seen as a positive signal for a potential India-US Trade Deal, with talks reportedly in advanced stages.
• US officials, including Treasury Secretary Scott Bassant and White House representatives, have lauded India's move, claiming a 50% reduction in Russian imports.

Why It Matters: India's reduced reliance on Russian oil imports is accelerating prospects for a significant trade deal with the US.