Tensions flared between India and the United States when President Donald Trump imposed a 25% tariff on Indian goods in response to imports of Russian oil. This move halted trade talks between the two countries. However, on February 2, Trump announced that the two nations had reached an agreement wherein India would stop purchasing crude oil from Russia in exchange for the removal of the 25% tariff. The agreement also reduced the reciprocal tariff on India from 25% to 18%. Following this announcement, the US asserted that India was indeed halting oil purchases from Russia, while Russia maintained that India would not be making any such changes. India remained silent on the matter but did mention a diversified oil sourcing strategy for national interest.

Recent data has now clarified the situation, showing that India has indeed decreased its oil imports from Russia. In January, the value of merchandise imports from Russia dropped by 40.5%, falling from $4.81 billion the previous year to $2.86 billion, indicating a significant shift in India’s energy sourcing strategy. This development not only underscores India’s response to US pressures but also highlights the evolving dynamics in the global oil market, where Saudi Arabia may be stepping into the space vacated by Russia in India's energy supply chain.