White House Trade Advisor Peter Navarro stated that India must choose between continuing to import Russian oil and maintaining access to the American market. According to him, India’s excessive dependence on oil from Russia not only provides situational benefits to the country but also significantly undermines international efforts to isolate the Russian economy, which finances aggression against Ukraine.
This is reported by Business • Media
Increase in India’s Import of Russian Oil
Before the full-scale invasion of Ukraine by Russia in February 2022, the share of Russian oil in India’s imports did not exceed 1%. Now, this figure has risen to over 30%, equivalent to more than 1.5 million barrels per day. At the same time, as Navarro points out, this increase is not a result of the country’s internal needs but is driven by oil companies’ desire for excessive profits.
“India’s dependence on Russian oil is a situational benefit that simultaneously deeply undermines the world’s efforts to isolate Putin’s war economy. In fact, India acts as a global intermediary for Russian oil, turning sanctioned raw materials into expensive exports and providing Moscow with the necessary dollars,” the publication states.
US Response and the Position of European Governments
Indian companies, having gained access to American dollars through trade with the US, are using these funds to purchase Russian oil. In response to this policy, the United States has imposed new 25% tariffs on goods from India, which complement the existing “reciprocal” tariffs of the same size.
US Treasury Secretary Scott Bessent, in turn, noted that European countries are purchasing petroleum products produced in India from Russian raw materials. He urged European governments to increase pressure on Russia and contribute to reducing Russia’s revenues from energy resource exports.