Indian PM Narendra Modi on Friday had a telephonic conversation with Russian President Vladimir Putin when they reviewed the progress of the bilateral agenda between the two nations, amid the recent tariffs imposed on New Delhi by the US.

Modi said he reaffirmed the commitment to further deepen the India-Russia Special and Privileged Strategic Partnership.

Calling Putin a 'friend', Modi wrote on X: "Had a very good and detailed conversation with my friend President Putin. I thanked him for sharing the latest developments on Ukraine. We also reviewed the progress in our bilateral agenda, and reaffirmed our commitment to further deepen the India-Russia Special and Privileged Strategic Partnership. I look forward to hosting President Putin in India later this year.

India freezes $3.78 billion P-8I Poseidon deal with US amid tariff spat over Russian oil: Report

In a sharp escalation of trade tensions, India has reportedly suspended a $3.78 billion (₹31,500 crore) defence deal with the United States in retaliation for President Donald Trump's imposition of a 50% duty over Indian oil imports from Russia, media reports said.

The decision, seen as a strong diplomatic signal, targets the long-pending purchase of six P-8I Poseidon maritime surveillance aircraft from American aerospace giant Boeing.

According to a report by IDRW, the move came on August 3, shortly after the Trump administration revived warnings over India’s continued oil imports from Russia.

New Delhi, however, has rejected what it calls Washington's “double standards,” pointing to continued US and European energy imports from Russia, including oil, gas, and fertilizers.

India hits pause on strategic maritime deal

The P-8I aircraft—highly valued by the Indian Navy for their anti-submarine and surveillance capabilities—were part of a strategic acquisition to bolster India’s maritime edge, especially amid increased Chinese activity in the Indian Ocean and Arabian Sea.

India already operates 12 P-8I aircraft, having first procured eight in 2009 for $2.2 billion (then about ₹19,000 crore), followed by four more in 2016 for ₹8,500 crore.

The latest batch of six aircraft was cleared by the US in 2021 for $2.42 billion, but cost escalations pushed the deal’s value to nearly $3.6 billion by July 2025, just weeks before the reported freeze.

Despite the rising cost, Indian defense planners were believed to be close to finalizing the purchase, citing the P-8I’s operational success and crucial surveillance coverage for India’s vast maritime domain.