Moscow: External Affairs Minister Dr. S. Jaishankar is on an official visit to Russia, where he met Russian Deputy Prime Minister Denis Manturov and stressed the need to further strengthen bilateral relations. On Thursday, Jaishankar held crucial talks with his Russian counterpart Sergey Lavrov in Moscow. The two leaders reviewed bilateral ties and exchanged views on regional as well as global developments.

The meeting comes at a time when India-Russia relations are deepening across key sectors such as defence, trade, and energy. Jaishankar noted that the talks provided an opportunity to prepare for the upcoming annual summit later this year. “Our leaders have always guided us to take forward the special strategic partnership. We discussed multiple aspects of cooperation and identified solutions. The changing global geopolitical and economic landscape compels us to maximize our complementarities,” he said.

Lavrov, in his remarks, underlined the importance of multipolarity in international relations, highlighting the growing role of groupings such as SCO, BRICS, and G20.

Focus on Trade Imbalance

Ahead of his meeting with Lavrov, Jaishankar flagged the need to urgently address the growing trade imbalance between the two countries. Speaking at the 26th session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation (IRIGC-TEC), he pointed out that bilateral trade has surged five-fold in four years, from $13 billion in 2021 to $68 billion in 2024-25. However, India’s trade deficit with Russia has also widened sharply from $6.6 billion to $58.9 billion in the same period.

“This imbalance requires immediate attention,” Jaishankar emphasized.

Energy Supplies to Continue

Russian Deputy Prime Minister Denis Manturov assured that energy supplies to India, particularly crude oil, will continue uninterrupted. He also signaled prospects of exporting liquefied natural gas (LNG) to India in the future. Co-chairing the IRIGC session, Manturov highlighted that over 90% of bilateral trade transactions are now settled in national currencies, strengthening resilience against global financial disruptions.

Expanding Cooperation

Manturov further noted that India and Russia will expand collaboration in the banking and insurance sectors and deepen cooperation in nuclear energy for peaceful purposes. Both sides reiterated their commitment to broadening strategic ties, with discussions also covering regional security, Asia-Pacific stability, and coordination at multilateral platforms.

With Jaishankar’s meetings setting the stage, the upcoming annual India-Russia summit is expected to yield significant outcomes for the future direction of the partnership.

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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:

• Genetically modified (GM) crops

• Dairy products

• Corn, soybeans, apples, almonds

• 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:

• Tariff reductions on industrial goods and technology imports.

• Data protection and digital trade policies, where India has taken a more protectionist stance.

• 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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The Trump administration has frozen funding for affordable housing projects, leaving these projects in limbo. The Trump administration has frozen or cut funding to several departments in an effort to limit federal government spending. Under this, the Trump administration stopped the funding of USAID and now it is believed that the funding of about six million dollars of this affordable housing project has been stopped.

Projects of non-profit organizations are affected
According to media reports, the US government provides financial assistance in the form of small funds to non-profit organizations for affordable housing projects. Now the Trump administration has banned about six million dollars from being released to non-profit organizations, due to which the projects for which these non-profit organizations were building houses have now stopped. A spokesperson for the US Department of Housing and Urban Development said the grant had not been suspended and was only being reviewed. It is not clear yet when the ban on funding will be lifted.

Funding freeze for Columbia University
The Trump administration also suspended $400 million in federal funding to Columbia University on Friday. The Trump administration took this action because of its inability to deal with cases of harassment of Jewish students at the university. The Joint Task Force on Anti-Semitism notified the university's acting president on March 3 after reviewing Columbia University's grants. "Jewish students have been facing constant violence, threats and harassment on their university campus since October 7, but they have been ignored by the university administration," said Linda McMahon, secretary of education. While they should have protected the students. If universities are to receive federal funds, they must comply with all federal anti-discrimination laws.'

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