New Delhi is not slowing down crude purchases from Moscow for the rest of this year, despite Washington’s penal tariffs
Indian refiners intend to continue purchasing Russian crude to meet rising fuel demand, even as New Delhi restarts trade talks with the US for a bilateral deal, Bloomberg reported on Thursday.
India’s imports of Russian oil are likely to remain strong for November and December deliveries, although volumes may fall short of recent highs, the media outlet said, citing people familiar with the procurement plans.
Deliveries of Russian crude to India rose by 5.6% in August to 1.6 million barrels per day (mbd), according to data from analytics firm Kpler.
New Delhi’s continued purchases of Russian oil have drawn the ire of the US, which has slapped 25% punitive tariffs on India, in addition to 25% levies imposed after the two countries could not arrive at a trade deal.
At a press conference with UK Prime Minister Keir Starmer on Thursday, US President Donald Trump said he had imposed “sanctions” on India, a country he claimed to have a close relationship with, in an effort to help bring an end to the Ukraine conflict.
”When I found out that the European nations were buying oil from Russia… And, as you know, I am very close to India, I am very close to the prime minister of India. I spoke to him the other day, I wished him a happy birthday. We have a very good relationship. He put out a beautiful statement, too… But I sanctioned them,” Trump said.
Before Trump’s comments on Thursday, India’s chief economic adviser, V. Ananatha Nageswaran, said he felt the US may soon scrap the penal import tariff on Indian goods and also cut the tariff to 10-15% from the existing 25%, according to a Reuters report.
A delegation led by US Trade Representative for South Asia Brendan Lynch held a new round of negotiations with Indian officials in New Delhi on Monday. Following the talks, India’s Commerce Ministry characterized the discussions as “positive and forward-looking.”
