After months of attempts to arm-twist India through tariff hikes and threats of further trade measures, US President Donald Trump appears to be having his way.
Reports have now surfaced that India is reviewing its oil import policy with Russia. One of India’s largest buyers of Russian oil is reportedly recalibrating its crude imports from Moscow amid heightened global sanctions and shifting diplomatic pressures, as both Washington and New Delhi navigate their positions on the Russia-Ukraine conflict.
The general picture that has emerged is that the extent of recalibration will be fully aligned to GOI (Government of India) guidelines.
Meanwhile, according to a report, Donald Trump had a conversation with Prime Minister Narendra Modi regarding India’s Russian oil purchases.
Change of stance?
India reportedly is aligning its stance. Going by reports, a scaling back of Russian crude supplies is on the cards.
“You can’t just stop it, but by the end of the year, they’ll be down to almost nothing,” Trump was quoted as saying, asserting that he had spoken with PM Modi.
Vibes of India awaits a statement from the government on this.
Trump’s move came after EU countries approved a 19th package of sanctions on Moscow for its war against Ukraine, which also included a ban on Russian liquefied natural gas imports. His measures followed Britain’s sanctioning last week of Rosneft and Lukoil.
Indian state refiners are reviewing their Russian oil trade documents to ensure that no supply will be coming directly from Rosneft and Lukoil after both companies were sanctioned by the US, a section of the media reported.
“Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine,” US Treasury Secretary Scott Bessent said in a statement.
“We encourage our allies to join us in and adhere to these sanctions.” Bessent added, saying “these are sanctions, not secondary tariffs.”
So far, Trump has relied on trade measures such as tariffs on Russia, marking a major policy shift. He earlier imposed an additional 25% tariff on goods from India in retaliation for its purchasing discounted Russian oil. However, the US did not impose the tariffs on China, despite it being another major buyer of Russian oil.
After Trump announced sanctions on Russia, oil prices jumped more than $2 a barrel, with Brent crude futures extending gains after settlement, rising to about $64, as reported by a section of the media.
Why the India-US relationship strained…
For the uninitiated, after Western countries imposed sanctions on Moscow and distanced themselves from Russian oil following the outbreak of the Ukraine war in 2022, India emerged as one of the largest buyers of Russian crude.
New Delhi boosted its imports, taking advantage of discounted prices. India has maintained that the move was essential to ensure energy security for millions of its citizens.
India has also highlighted that several Western nations, including the US, maintain ongoing trade relations with Russia.
The US has accused New Delhi of inadvertently supporting Russia’s war effort by continuing to purchase its crude oil.
India has vehemently contested the claims.
Last year, the US President said that he likes to remove sanctions quickly because of the risks to the dominance of the dollar in global transactions that the measures can bring.
Mood not right for talks at global level
Trump told reporters in the Oval Office that he cancelled a planned summit in Hungary with Putin because it didn’t feel like the right time. He added that he hopes the sanctions on Russian oil companies will not need to be in place for a long time.
That the prevailing sentiment is not conducive for a dialogue on the global stage can also be gauged by the fact that PM Modi is unlikely to travel to Malaysia to participate in the meetings related to the ASEAN summit. While scheduling is cited as the reason, it’s widely understood to be a shift in international relations rather than a mere calendar conflict.
Also Read: Trump-Backed Senate Bill Threatens 500 Percent Tariffs On India, China Over Russian Oil Trade https://www.vibesofindia.com/trump-backed-senate-bill-threatens-500-percenttariffs-on-india-china-over-russian-oil-trade/
