India increases purchases of Russian oil despite US sanctions
India plans to increase its imports of Russian oil by 10-20% in September, despite new 50% US tariffs on its goods. New Delhi is thus demonstrating its unwillingness to give up cheap Russian raw materials that help the Kremlin finance its war against Ukraine.
This is reported by Reuters .
As you know, India has been the largest buyer of Russian oil for several years after Western sanctions were imposed on supplies from Moscow in 2022. In August, the country imported about 1.5 million barrels per day , which covers almost 40% of the state’s energy needs.
According to traders, purchases will increase by another 150,000–300,000 barrels per day in September, as Russian exporters are offering oil at a discount of $2–3 per barrel to Brent. This is more profitable than in August, when discounts decreased to $1.5.
The Trump administration has raised tariffs on Indian goods to 50% in an attempt to stem financial flows to Moscow and increase pressure on Russia. However, Indian Prime Minister Narendra Modi has said his country will continue to work with Russia and seek diplomatic solutions to trade disputes with Washington.
In the US, India is accused of “profiting from war,” while New Delhi points to the West’s double standards, as the EU and the US still buy billions of dollars worth of goods from Russia.
The Indian market is critically important for Russia: without it, Moscow would not be able to maintain current export volumes. Meanwhile, Ukrainian military strikes on Russian oil refineries have disabled up to 17% of capacity, making exports even more profitable for Moscow.
Experts predict that without a clear ban or global embargo, India will not stop buying cheap Russian oil. If imports are halted, it could cut global oil supplies by about 1 million barrels per day and send prices soaring to $100 a barrel.
On the eve of the meeting, US President Donald Trump decided to impose a 50 percent tariff on Indian goods imported into the United States. The move is aimed at pressuring New Delhi over India’s continued purchase of Russian oil, which Trump says the Kremlin is using to finance its war in Ukraine.
It was previously reported that Indian oil refiners, some of the largest importers of Russian oil, are preparing to reduce their purchases in the coming weeks . The move could be seen as a partial concession to Washington ahead of the US tariff hike, but it also suggests that India has no intention of severing its energy ties with Russia.
As a reminder, US Treasury Secretary Scott Bessant sharply criticized India for the active increase in imports of Russian oil during the war against Ukraine . According to him, New Delhi not only purchases raw materials at reduced prices, but also resells products from it on international markets, receiving significant profits from this.
Also follow “Pryamim” on Facebook , Twitter , Telegram , and Instagram.