Indian oil refiners brace for government order to halt Russian crude imports – Reuters
Photo: India is preparing to stop funding the war against Ukraine (Getty Images)
Indian oil refiners are waiting for guidance from the government after the US decided to impose additional 25% tariffs on Indian goods. The new measures are a response to continued imports of Russian oil, reports Reuters.
Washington has already applied tariffs to reduce the trade deficit with New Delhi, but the current measures are directly related to India's energy cooperation with Moscow.
Private companies continue purchases
State-owned refineries have suspended supplies, while private players such as Reliance Industries, Nayara Energy, and HPCL Mittal Energy continue purchases.
A representative of a private oil company in India said, "So far, we have not been told anything by the government, so we will not stop Russian oil imports."
Russia supplies more than a third of India's oil needs, which is the third-largest importer in the world.
Pressure from the US and possible consequences
US President Donald Trump has sharply criticized India's deals with Russia, saying they help finance the war against Ukraine.
Indian authorities have called the US actions "unfair, unjustified, and unreasonable."
In response to the sanctions, India may increase its oil purchases from alternative suppliers - from the Middle East, Africa, and America.
Saudi Arabia has already raised oil prices for Asian countries, expecting an increase in demand from India. "In anticipation of higher Indian demand, they have kept the prices very strong," said a representative of one of the refineries.
New tariffs take effect in 21 days
The additional tariffs are expected to take effect in three weeks. However, Trump's executive order provides for the possibility of their cancellation if Russia or India "align sufficiently with the United States on national security, foreign policy, and economic matters."
Trump did not rule out imposing secondary sanctions against China for helping Russia in the war against Ukraine.
According to Bloomberg, the Trump administration is considering new sanctions against the shadow fleet of Russian oil tankers and organizations involved in its maintenance.
