Indian companies have already booked cargoes loading in February and arriving in March, so a wind-down period would be needed to fulfil existing commitments, the sources said. They spoke on condition of anonymity because they were not authorised to speak with the media.
ALSO READ: India, US achieve diplomatic breakthrough with trade deal; tariffs on Indian goods cut to 18%
The trade deal with India would slash U.S. tariffs on Indian goods to 18% from 50% in exchange for India lowering trade barriers and stopping its purchases of Russian oil. It would buy oil instead from the U.S. and potentially Venezuela.
India became the top buyer of discounted Russian seaborne crude after the 2022 outbreak of war in Ukraine, generating a backlash among Western nations that targeted Russia’s energy sector with sanctions.
The United States wants to curb Russia’s oil revenues to make it harder for Moscow to fund the war.
“We spoke about many things, including Trade, and ending the War with Russia and Ukraine,” Trump said of his discussion with Modi. “He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.”
ALSO READ: Trump “must move rapidly” to strengthen India ties after trade deal, US lawmaker says
Modi followed with a post on social media that he was delighted with the reduced tariff, but made no mention of a halt to purchases of Russian oil.
Reuters last week reported that the United States had told Delhi it could soon resume purchases of Venezuelan oil to help replace imports of Russian oil. Trump said on Saturday that India would buy Venezuelan oil.
Indian Oil Minister Hardeep Singh Puri last month said India was diversifying its crude sources as its Russian oil imports fall.
Data from trade sources showed India’s Russian oil imports fell to their lowest level in two years in December, while OPEC’s share of Indian imports rose to an 11-month high.
Indian refiners have been buying more oil from Middle Eastern, African and South American countries as they began scaling back Russian oil purchases, following discussions at a government meeting about accelerating a U.S.-India trade deal, refining sources said last month.
