India is going to increase fuel oil imports from Russia in September, ignoring the high retaliatory and punitive tariffs imposed by the United States. The country’s businessmen have reported this information.
The United States has imposed this punitive additional tariff on New Delhi to force India to stop oil trade with Russia and pressure Moscow to sign a peace treaty with Ukraine.
Russia has faced Western sanctions after starting the war in Ukraine in 2022. This has reduced the country’s fuel oil supply. In such a situation, India has become the largest buyer of Russian fuel oil. Because Indian refiners are getting the benefit of buying cheap crude oil from Moscow.
However, the administration of US President Donald Trump has strongly criticized India for buying oil from Russia. As a punishment, Trump has doubled the tariff on goods imported from India to the United States. The 50 percent tariff on Indian goods came into effect last Wednesday (August 27).
India says it wants to resolve the tariff issue through talks. But Prime Minister Narendra Modi is busy with other diplomatic trips, including meetings with Russian President Vladimir Putin.
US officials have accused India of profiting from cheap Russian oil. India has accused the West of a two-pronged policy. The country claims that the European Union and the United States are still buying billions of dollars worth of goods from Russia.
Indian refiners could increase their oil imports from Russia by 10 to 20 percent in September, equivalent to 150,000 to 300,000 barrels per day, three sources familiar with the oil trade said.
India is currently the largest buyer of Russian oil. About 40 percent of the country’s total demand is met by Russian crude. China and Turkey are the other two top buyers of Russian oil.
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