US Treasury says India to reduce Russian oil imports soon
India will soon start purchasing less Russian oil (Illustrative photo: Getty Images)
The US expects India to increase its imports of American oil while reducing purchases from Russia, states US Treasury Secretary Scott Bessent.
“We put a 25% Russian oil tariff on India, and I think soon we're gonna see the rebalancing where they are buying less Russian oil, more American oil,” Bessent said.
He also added that this rebalancing of India’s oil purchases should take place in the coming weeks or months.
India buys oil from Russia
Recall that Russia supplies about 40% of India’s oil needs, making the country the largest buyer of Russian seaborne oil. Before the war, this share was less than 1%.
According to analysts, since 2022, India has saved at least $17 billion by increasing imports of cheap Russian oil.
At the same time, US President Donald Trump in August signed a decision to impose 50% tariffs on imports of Indian goods.
The US has repeatedly pressured India over its cooperation with Russia in the oil sector. Washington accuses New Delhi of helping Moscow generate revenue to finance the war against Ukraine by purchasing Russian oil at discounted prices.
The 50% US tariffs could cost the Indian economy up to $20 billion in just one year. However, India only slightly reduced its purchases of Russian oil after Trump’s tariffs.
