Russia Pledges Continued Oil Supply to India Despite U.S. Tariff Threat
Key Takeaways
- •Russian Ambassador Denis Alipov said Russia is ready to supply as much oil as India needs and will remain a key supplier despite U.S. tariff threats.
- •A U.S. bill that passed the Senate 86-11 would authorize 100% tariffs on the largest buyers of Russian oil and gas, but is deadlocked in the House and unlikely to pass before November's mid-term elections.
- •Russia has become India's single-largest oil supplier, displacing Middle Eastern crude and delivering substantial savings for the world's third-largest crude importer and consumer.
- •India and China would be the countries most exposed to the proposed U.S. tariff measures given their large purchases of Russian crude.
- •India's Russian oil imports declined in August from July's record high, pressured by Ukrainian attacks on Russian export infrastructure, Chinese competition, and U.S. sanctions on tankers and traders.
Russia has reaffirmed its commitment to remaining a key crude oil supplier to India, according to Russia's Ambassador to India, Denis Alipov, who spoke in an interview with Asian News International (ANI). In the interview, the ambassador also criticized planned U.S. legislation that would impose tariffs on countries importing Russian oil.
Russia has become India's single-biggest oil supplier in recent years, a shift that followed decisions by the United States, the United Kingdom, and the European Union to ban Russian oil imports and step up sanctions pressure on Russia after the invasion of Ukraine. Indian refiners, most of them state-run, have historically sourced the bulk of their crude from the Middle East, and the pivot to discounted Russian barrels has reshaped those traditional trade flows while delivering substantial savings for India, the world's third-largest crude importer and consumer.
In the U.S. Congress, lawmakers are working to pass a so-called "bill from hell" targeting Russia, sponsored by the late Senator Lindsey Graham (The Hill). The bill would give President Donald Trump the authority to impose 100% tariffs on the largest buyers of Russian oil and gas. It passed the Senate by a vote of 86-11 but now appears deadlocked in the House of Representatives, where Republicans are divided and Democrats have raised concerns about granting President Trump new tariff authority. Analysts say the legislation is unlikely to clear the House before the mid-term elections in November. India, alongside China, would be among the countries most exposed to such measures, given the scale of its Russian crude purchases.
Against this backdrop, Alipov said Russia has been and will continue to be a key oil supplier to India.
"We would be ready to supply as much oil as India needs. Unfortunately, those who impose sanctions and tariffs have taken the path of pressure tactics instead of honest cooperation, which prevents those countries from offering a better deal to India in oil than us," Alipov told ANI.
"The world will not cope if Russian oil is excluded. The energy markets cannot afford that. Russian oil will stay in the market for India and other countries. We are interested in supplying oil to India. India is interested in buying that oil," the ambassador said.
Meanwhile, India's crude oil imports from Russia are estimated to have eased in August from July's record high, as Ukrainian attacks on Russian export infrastructure and competition from China for Russian barrels have reduced Indian intake of Moscow's oil (OilPrice.com). India has also faced a separate compliance squeeze, as U.S. sanctions on Russian tankers and traders have at times disrupted deliveries and forced refiners to seek alternative sources.
By Charles Kennedy for Oilprice.com.
