Modi agrees to drop Russian oil for US-Venezuela Oil.
After months of pressure over India’s purchases of discounted Russian and sanctioned Iranian crude, New Delhi appears to have bowed to US President Donald Trump’s demand by agreeing to phase out Russian oil imports and shift toward buying more barrels from the United States — and potentially Venezuela.
Trump said India could buy $500 billion (€424 billion) worth of US energy and coal, along with technology, agricultural and other products.
1)This agreement will take time to implement. Could be a year.
2)This agreement will pressure Russia to make concessions in peace talks.
3)Will the volume from Venezuela be enough to make up for Russian crude?
4)Is this deal the real reason behind the Venezuela coup d’etat? A strategy behind US actions in Venezuela?
5)Russian is an cheap oil supplier. Why would India make the deal? Tariffs on India are cut.
US President Donald Trump has announced a trade deal to reduce tariffs on India, saying that Prime Minister Narendra Modi had promised to stop buying Russian oil over the war in Ukraine.
Trump said he was cutting levies on Indian goods to 18%. He had previously imposed 25% “reciprocal” tariffs on many products, plus an additional 25% for New Delhi’s purchases of Moscow’s oil.
A 50% tariff cut to 18%.
Modi in his tweet didn’t mention any of the deal that Trump mentioned. I wonder whether Trump announced his wish list rather than what is agreed upon. India may diversify their Oil sources, but I doubt they will completely stop buying from Russia. India-Russia ties are much deeper.
On kissing the ring, the emerging media reports paint US rushed to the deal after India-EU deal and don’t want to be left alone… India was patient and not ceded to any of Trump’s demand so far, and I will be surprised why they suddenly feel the need to change the course.
The tariff cut from 50% to 18% on all Indian goods very well may make up the price differential. But the switch over will take time. Maybe up to a year.
For ex: Indian refineries are not build to process Venezuelan oil. Yes India used to buy Venezuelan Oil, but the quantity Trump is talking there is no refining capacity. If anyone thinks India is going to walk away from Russia, they don’t understand how deep the ties are. Indian army has significant Russian arms and India and Russia has joint military manufacturing. While US is historically very unreliable and Trump cozying to Pakistani Military dictator is something a real concern.
DW article sez US oil will be imported.
India is moving away from Russian weaponry
They have purchased French & domestically made fighters to begin replace aging Russian aircraft.
While most of India’s tanks are Russia; they have started domestically producing their own design.
Not at all true. India’s flagship missile program Brahmos is a joint venture with Russia. India has certainly diversified its arms procurement and increased domestic production. But that doesn’t mean they are moving away from Russia.
To help you understand, India is a long-term friend of Palestinian causes and a close ally of israel too. Just because India signs a trade deal with US and EU, that doesn’t mean they walk away from Russia.
Palestine & Israel. Bitter enemies. So India is neutral in that conflict. Nothing to be gained by taking a side there.
I beg to differ on the declining influence of Russia upon India. India is broadening their horizon with deals with the US plus the recent US-India defense pact. And the past joint naval exercises. I suspect with the aim of containing China in the region.
India and the US have signed a framework agreement to expand defence cooperation over the next 10-years.
The pact was announced after a meeting between US Defence Secretary Pete Hegseth and his Indian counterpart Rajnath Singh in Kuala Lumpur.
India clearly understands, West and specifically US wants to pit India against China. India cannot match China’s military spending. It will drain India’s finances for the benefit of US defence companies. So there are limits. Trump is deeply unpopular in India. People are not ready to forget Peter Navarro’s comments.
This trade deal doesn’t erase the past. Nations have long memory.
The evolving dynamics of modern warfare and the rapid advancement of commercial technology are driving many countries to invest heavily in modernizing their militaries. India, positioned between China and Pakistan, has accelerated efforts to strengthen its armed forces while reducing reliance on traditional partners such as Russia. While India has made advances across all branches of its military, it has placed a particularly strong focus on modernizing its naval fleet.