India to maintain Russian oil imports despite US tariffs and threats: Report
According to the two government officials cited by the news agency Reuters in its report on Sunday, New Delhi does not anticipate any immediate policy shifts regarding these crucial energy purchases. The 25 per cent tariff announcement and hint for the further repercussions was made by the US President via a Truth Social post. In his post, the US President hinted at repercussions for India's ongoing imports of Russian oil and weaponry.
New Delhi: Undeterred by President Donald Trump's recent announcement of higher tariffs on Indian exports and threats of further penalties for trade ties with Russia, Indian companies are set to continue their oil imports from Russia.
According to the two government officials cited by the news agency Reuters in its report on Sunday, New Delhi does not anticipate any immediate policy shifts regarding these crucial energy purchases.
The 25 per cent tariff announcement and hint for the further repercussions was made by the US President via a Truth Social post. In his post, the US President hinted at repercussions for India's ongoing imports of Russian oil and weaponry. However, the sources in the Indian government emphasised the practicalities of such a shift, saying, "These are long-term oil contracts. It is not so simple to just stop buying overnight."
Defending India's engagements with Russian oil and weaponry suppliers, a source contacted by Reuters highlighted the role these imports have played in stabilising global oil prices. They believe that despite Western sanctions targeting Russia's energy sector, these purchases have contributed to keeping prices relatively stable. The government source made it clear that, unlike crude from Iran and Venezuela, India is acquiring it at a price below the European Union's set cap, as Russian oil is not subject to direct sanctions.
Earlier on Saturday, sources familiar with the developments informed the news agency ANI that Indian oil refiners would proceed with sourcing oil from Russian suppliers. Their procurement decisions, they stated, are guided by a pragmatic assessment of price, crude grade, existing inventories, logistics, and broader economic considerations.
"Indian oil refiners continue to source oil from Russian suppliers. Their supply decisions are guided by price, grade of crude, inventories, logistics, and other economic factors," the sources explained.
Reports from Russian media have also indicated that the Indian government has not issued any directives to domestic refineries to cease Russian oil imports or to seek alternative suppliers. This comes as a Reuters report on Friday had suggested a potential halt in India's purchases of discounted Russian oil.
Reacting to the reports of a possible halt, President Trump had commented to reporters that it would be "a good step" if confirmed. "I understand that India is no longer going to be buying oil from Russia. That’s what I heard. I don’t know if that’s right or not. That is a good step. We will see what happens," he had stated.
However, the Ministry of External Affairs spokesperson, Randhir Jaiswal, clarified India's position on Friday, emphasising that the nation prioritises securing its energy needs based on market offerings and prevailing global circumstances. "In securing our energy needs, we are guided by what is on offer in the markets, and by the prevailing global circumstances," Jaiswal said.