Indian refineries, both state-owned and private, plan to reduce oil purchases from the Russian Federation to a level of 1.4–1.6 million barrels per day starting in October. This is lower than the average of 1.8 million barrels per day recorded in the first half of this year. Thus, Delhi is demonstrating a cautious step towards the United States, which will soon increase tariffs on imports of Indian goods to 50%.
This is reported by Business • Media
India Maintains Energy Ties with Russia
Despite the reduction in purchase volumes, India does not plan to completely abandon Russian oil. The cost of raw materials from Russia remains a key factor for Indian refineries in making import decisions. If New Delhi can reach a trade agreement with Washington and avoid further pressure, import volumes may rise again. Until 2022, India purchased minimal volumes of oil from Russia, but currently, this country accounts for 37% of all Russian oil exports.
Indian Exports at Risk Due to New US Tariffs
At the same time, Indian exporters are preparing for potential trade disruptions, as the US Department of Homeland Security has confirmed its intention to impose additional tariffs. The official position of the United States is that these measures are a response to India’s indirect support of Russia’s military aggression against Ukraine.
The US emphasizes that these measures are a response to India’s indirect support of Russia’s military invasion of Ukraine.
Exporters who suffer losses from the new tariffs will receive financial support and will be encouraged to seek alternative markets, including in China, Latin American countries, and the Middle East.