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Trade Talks With US: Russia Oil Issue Surfaces as Lynch Arrives in New Delhi

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New Delhi: As senior American trade negotiator Brendan Lynch begins discussions with Indian officials this week, remarks from White House trade adviser Peter Navarro have once again put India’s energy imports from Russia in the spotlight.

Navarro, in sharp comments ahead of the visit, accused Indian refiners of benefiting from Russian crude supplies while maintaining steep barriers against US exports. “They make profits through unfair practices, then funnel that money into Russian oil purchases, which ultimately strengthens Moscow’s military,” he said. “Now India is finally coming to the table — but the tariffs remain among the highest in the world.”

Despite the criticism, the Ministry of Commerce confirmed that Lynch, Assistant US Trade Representative for South and Central Asia, would hold meetings in New Delhi on Tuesday. His counterpart Rajesh Agrawal, India’s chief negotiator and Special Secretary in the Commerce Department, underlined that the dialogue had remained active through virtual channels even after a previously scheduled round in August was postponed.

“This is not formally the sixth round of negotiations,” Agrawal clarified. “It’s an intensive effort to identify solutions that can move the agreement forward.”

US President Donald Trump has in recent weeks described Prime Minister Narendra Modi as a “close friend” and expressed confidence that the two countries would overcome their differences. Modi, for his part, has called the US a “natural partner,” stressing the need to unlock the “boundless opportunities” of the partnership.

Talks on the proposed trade pact have been underway since March, with the aim of finalising at least a first-phase deal before November. But several sticking points remain — Washington has pressed New Delhi to lower barriers in the farm and dairy sectors, while India has cited the livelihoods of millions of small farmers as a red line.

Relations were strained further after Washington announced steep import duties on Indian goods last month, including measures linked to New Delhi’s continued purchases of Russian crude. Whether the latest round of discussions can narrow these divides will be closely watched in both capitals.

All news on Encounter News is computer-generated and sourced from third parties. Please read and verify carefully. We will not be responsible for any issues. 

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