Russia said on Tuesday it would watch and see how the situation evolves regarding Indian purchases of its oil, after the United States said New Delhi had agreed to halt them.

Deputy Prime Minister Alexander Novak told reporters that Moscow had only seen public statements on the issue, and "we'll see how the situation develops."

Overall, he said, there was good demand for Russian energy.

The Trump administration said on Monday that India had agreed to stop buying Russia oil and that the U.S. was responding by sharply cutting its tariffs on Indian goods.