India will continue to buy Russian oil regardless of US tariffs, said the Minister of Finance
India will continue to buy Russian oil because it is proven economical, said its finance minister, although there is a Trump administrative decision to impose a heavy import tariff on Indian goods because, in part, for energy purchases from Moscow.
Because Europe and the US have avoided Russian oil over the Moscow 2022 invasion of Ukraine, India has taken advantage of discounts on Russian output to be the largest buyer of Russian sea crude oil.
New Delhi said the purchase of Russian oil has maintained market balance.
US President Donald Trump, who sought to mediate the Ukraine conflict, said Indian oil imports helped fund Moscow’s war efforts and imposed a 50% tariff on imports from India last month.
Minister of Finance Nirmala Sitharaman, speaking at the local news channel CNN-NEWS18, said India, oil importers and the third largest consumer in the world, had no plans to avoid Russian supply.
“We have to receive the telephone (supply source) that is most suitable for us. So we will definitely buy it,” he said, adding that India spent most of foreign exchange for the purchase of crude oil and fine fuel.
US Trade Secretary Howard Lutnick urged India on Friday to support the dollar, continuing trading talks with Washington and stopped buying Russian oil.
“We are always willing to talk. Chinese people sell to us. Indians sell to us. They will not be able to sell each other. We are world consumers,” Lutnick said in an interview with the “Bloomberg Surveillance” program.
“Either supporting the dollar, supporting the United States, supporting your biggest client – who is American consumers – or, I think you will pay a 50%tariff. And let’s see how long this takes place.” He estimates India will return in one or two months, apologize to Trump and look for trade agreements.
In the fiscal year to March 2025, the purchase of fuel and processed oil from abroad contributed about a quarter of all Indian imports.
“Whether it’s Russian oil or anything, it is our decision to buy from a place that suits our needs both in terms of tariffs, logistics, whatever,” Sitharaman added.
Indian Prime Minister Narendra Modi joined Russian President Vladimir Putin at Puncak in Tianjin this week who hosted Chinese President Xi Jinping as a demonstration of solidarity to the West.
Modi’s participation at the meeting, nicknamed “Axis of Thomeaval” by several observers, together with leaders of countries such as North Korea and Myanmar were seen by several experts as a consequence of New Delhi who disagreed with Washington.
Talks between the two countries aimed at negotiating agreements to reduce the burden of US tariffs on Indian goods have been decomposed.
Last month, the visit planned by US trading officials to New Delhi was canceled, and since then there has been no physical meeting between the two parties.
The US Secretary of the Treasury Scott Besent accused India of being profiten by importing Russian oil at a cheaper price and then reselling processed fuel at a higher level.
Trump, in a post on the Social Truth social media platform on Friday, commented on the presence of Putin and Modi in China.
“Looks like we have lost India and Russia to deepest, darkest, China. Hopefully they have a long and prosperous future together!” He wrote.
Source: Reuters
