India Imports 10% of LPG from US in \’Historic\’ Deal Amid Tightrope Walk Over Russian Oil

India is attempting to ease trade friction with the United States by significantly ramping up its energy purchases from Washington, even as it walks a diplomatic tightrope ahead of a planned visit by Russian President Vladimir Putin next month.

The Indian government announced a \”historic development\” this week: state-run oil companies have finalized a one-year deal to import around 10% of the country\’s annual Liquefied Petroleum Gas (LPG) needs from the US, beginning in 2026.

Petroleum Minister Hardeep Singh Puri described the move as opening up one of the world\’s fastest-growing LPG markets to the US.

This agreement is seen as a key concession to the Trump administration, which has been urging Delhi to reduce its dependency on Russian oil. Since the Ukraine war began in 2022, India became one of the biggest buyers of Russian crude, importing $52.7 billion worth of Russian oil last year (37% of its oil bill).

The US responded to these purchases by imposing 50% tariffs on Indian goods in August—a levy that includes a 25% penalty for buying Russian oil.

While President Trump claims India has agreed to reduce its Russian oil purchases, India has not officially confirmed this, creating a delicate diplomatic balance as trade talks accelerate.

Despite the political sensitivity of the energy imports, trade talks between India and the US have sped up. A senior Indian official confirmed this week that the first phase of the bilateral trade deal is \”more or less near closure.\”

The push for a deal is underscored by new data showing that India\’s goods exports to the US rebounded 14.5% in October, suggesting tariff-exempt sectors are performing well. Furthermore, the US has rolled back tariffs on key Indian farm goods, a move that analysts say would effectively exempt $1 billion of India\’s agricultural exports from duties.