The US Secretary of State says Washington and New Delhi are very close to an agreement, with dairy access and India’s Russian oil purchases still complicating the final talks.
Marco Rubio said on Monday that Washington was “very close” to reaching a trade agreement with India, signalling that months of friction over tariffs and Russian energy purchases may be easing as the two governments try to close the deal.
Speaking to reporters in Samarkand, Uzbekistan, the US Secretary of State said the negotiations were part of the wider backdrop to President Donald Trump’s decision-making on sanctions waivers and other national security measures. Rubio is due to travel to India this week for talks with External Affairs Minister S. Jaishankar in Mumbai, where trade, energy investment and defence cooperation are expected to dominate the agenda.
The comments came days after Trump issued an executive order implementing the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, while also retaining the power to waive sanctions, restrictions and duties under certain conditions. According to the White House, the law covers penalties on foreign persons and duties on imports from Russia and some other countries. Axios reported that Trump later used that authority to suspend fresh Russia sanctions, a move that drew criticism from both parties in Washington.
Rubio said the administration had to weigh the effect of sanctions on global energy supplies and prices, particularly for countries that cannot easily source alternative imports. India has defended its purchases of Russian oil by arguing that it must secure affordable energy for its domestic market. The country remains one of the largest buyers of Russian crude, and Reuters and other reports have noted that Russian oil has accounted for a substantial share of India’s imports this year, although volumes have begun to ease amid tariff pressure and shifting market conditions.
Indian Commerce and Industry Minister Piyush Goyal said last week that the first phase of the trade arrangement had been completed and was now in legal drafting. The Economic Times reported that the remaining sticking point is dairy access, which has emerged as one of the hardest issues to resolve. Rubio’s visit to India, including a stop in Jamnagar, suggests both sides are trying to keep the broader relationship on track even as they navigate the politics of Russia sanctions, energy security and market access.
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