Washington D.C., August 1, 2025
In a sharp statement that may further strain U.S.-India relations, U.S. Secretary of State Marco Rubio has accused India of providing indirect support to Russia’s war efforts in Ukraine by continuing to purchase discounted crude oil from Moscow. Rubio’s remarks come at a time when both nations are already locked in contentious negotiations over trade agreements.
India’s Oil Imports From Russia Under Scrutiny
Speaking in an interview with a prominent American media outlet, Rubio claimed that India's decision to buy cheap Russian oil has become a significant concern for the United States.
“India is purchasing oil from Russia at discounted prices, which is giving Russia the financial strength to continue its war against Ukraine,” said Rubio.
He emphasized that while India does require large volumes of energy to sustain its economy, it still has alternatives beyond Russia.
“India is helping Russia sustain the war, whether intentionally or not,” Rubio asserted.
He added that this oil trade undercuts international sanctions meant to pressure the Kremlin. “In many cases, Russia is selling oil below global prices due to sanctions. This helps them economically and undermines our joint efforts to end the war in Ukraine,” Rubio said.
Rubio also pointed out that President Donald Trump is “very upset” about the situation, as India’s continued oil trade with Russia conflicts with the broader strategic goals of the United States in Europe and global energy markets.
“Not Just About Oil” – Broader Disagreements Emerging
Rubio acknowledged that while India’s oil imports are a serious issue, they are not the only point of friction in U.S.-India relations.
“We have several disagreements. Energy is just the most visible one. There are deeper trade and policy challenges we’re trying to address,” he said.
Stalled Trade Talks Over Agriculture and Dairy
One of the most contentious issues in the ongoing U.S.-India trade talks is America’s demand for greater access to India’s agriculture and dairy markets.
The U.S. has been pressuring India to lower tariffs and open up these sectors for American exports, including:
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Genetically modified (GM) crops
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Dairy products
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Corn, soybeans, apples, almonds
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Biofuels like ethanol
However, India has so far resisted these demands. Indian officials argue that allowing U.S. agricultural imports would harm millions of small Indian farmers, who cannot compete with heavily subsidized American agribusinesses.
“If we open our markets to U.S. dairy and farm products, our local producers will be devastated,” an Indian trade official was quoted as saying in response to ongoing pressure from Washington.
India also fears that lowering tariffs could lead to a flood of imports that would disrupt domestic food security and rural livelihoods.
Other Trade and Strategic Differences
Beyond agriculture and energy, other sticking points include:
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Tariff reductions on industrial goods and technology imports.
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Data protection and digital trade policies, where India has taken a more protectionist stance.
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Defense cooperation and technology transfers, where the U.S. seeks greater alignment.
Geopolitical Backdrop: Balancing Act for India
India has tried to maintain a neutral stance on the Russia-Ukraine war, refraining from condemning Russia outright while continuing economic engagement, particularly in energy. This pragmatic approach reflects India’s need for affordable fuel and its longstanding defense ties with Moscow.
India has repeatedly emphasized its independent foreign policy, asserting its right to act in its national interest, even if that means engaging with sanctioned states like Russia.
Meanwhile, the U.S. is attempting to balance its frustration with India’s Russia ties against the strategic imperative of maintaining strong relations with a key Indo-Pacific partner amid rising tensions with China.
What’s Next?
As of now, trade talks remain ongoing, but progress is slow. Rubio’s public criticism is likely to add further political pressure on New Delhi.
India has not yet issued an official response to Rubio’s statements. However, insiders say the Modi government is standing firm on its current position regarding both energy security and agricultural sovereignty.
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