Trump’s 50% tariffs: Indian refiners may trim Russian crude purchases; but India signals no plans to stop Russia oil trade
Indian refiners’ crude oil procurement from Russia is set to reduce in the coming weeks, albeit modestly. The move comes at a time when the Donald Trump administration has imposed a 25% additional tariff on India for its crude trade with Russia.The US Department of Homeland Security has released a draft notification proposing to increase tariffs on Indian imports from 25% to 50%.Indian refiners, who are major purchasers of Russian crude oil, intend to reduce their imports in the coming days, according to a Bloomberg report. The adjustment is subtle, and India has made it clear that it will continue to purchase crude oil from Russia to secure its national interests.Major state-operated and private processors, including Reliance Industries Ltd, are projected to purchase between 1.4 million and 1.6 million barrels daily for October loading and subsequent months, sources familiar with the situation told Bloomberg.This is a reduction from the first half of the year’s average procurement of 1.8 million barrels per day.
Indian refiners to buy less Russian crude in coming months
US stance on India’s crude oil trade with Russia
The Trump administration, determined to decrease its trade imbalance with India, has intensified its stance regarding India’s oil trade with Russia. The US has also accused India of indirectly financing Russia’s war with Ukraine.India’s oil trade volumes could change if a trade agreement is reached with Trump and if the US changes its stance against India for its Russia trade ties, sources were quoted as saying.Also Read | Explained: How will Donald Trump’s tariffs impact India’s exports to US? These sectors will be the hardest hitUS President Donald Trump has specifically criticised India’s Russian crude purchases since late last month, particularly highlighting the substantial increase following the Ukrainian conflict’s onset.According to Kasatkin Consulting, India’s share of Moscow’s oil exports has grown from negligible levels before 2022 to 37% currently. US government officials have intensified their public criticism, focusing particularly on India’s oil firms.
India firm on Russia crude oil purchase
In response to allegations concerning profits from Russian crude oil, External affairs minister S Jaishankar recently said, “It’s funny to have people who work for a pro-business American administration accusing other people of doing business. If you have a problem buying oil or refined products from India, don’t buy it. Nobody forces you to buy it. Europe buys, America buys, so you don’t like it, don’t buy it.”The External Affairs Minister staunchly defended India’s energy ties with Russia, stating that the country’s oil imports benefit both domestic and global interests.Also Read | ‘We have red lines…’: Jaishankar’s clear message on India-US trade deal; slams ‘sanctions’ on Russia oil, says ‘if you don’t like it, don’t buy it’On the subject of crude oil purchases and limitations, Jaishankar remarked, “It is presented as an oil issue but it’s still not applied to the largest importer, China. Arguments used to target India have not been applied to China.”He underlined that India retains its sovereign right to make choices and stated, “At the end of it all, we make decisions that are in national interest.”
