The United States has increased tariffs on Indian imports to 50% over India's purchase of Russian oil, frequently criticizing India. Trump's aide, Peter Navarro, claimed the Ukraine conflict was actually 'Modi's war,' accusing India of supporting Russia by buying discounted oil.
Meanwhile, industry sources have debunked these allegations, highlighting the global repercussions had India ceased oil imports from Russia. These sources argue India's actions averted a crisis, potentially leading crude prices to escalate to $200 per barrel.
According to Business Today's report, India's imports stabilized global markets and did not economically support Russia but helped keep fuel prices stable worldwide. U.S. Treasury Secretary Janet Yellen and other global figures have praised this move.
When Crude Was $137 Per Barrel
Previous fears of Russian oil exiting global markets had driven Brent crude prices sky-high, reaching $137 per barrel in March 2022. India maintained global balance by continuing oil purchases. As sources from ANI reveal, India abided by international regulations without any violations.
Source: aajtak
Navarro's Claim
Early this week, Peter Navarro, in an interview with Bloomberg, claimed India is aiding Russia by purchasing oil at discounted rates. He posited that if India stopped buying Russian oil, they could see an immediate 25% tariff reduction from the U.S. Navarro added that the path to peace in Ukraine goes through India.
Industry sources emphasized that contrary to popular claims, Indian refiners do not use U.S. dollars for Russian oil transactions. They broker deals through third country traders and settle in currencies like AED. The U.S. government has not formally asked India to cease its purchases. India's trade remains legitimate, adhering to G7 and EU price norms.
Black Market Oil?
Rumors about India's involvement in oil black marketing were also dismissed. Sources explained, 'Russian oil doesn't face bans similar to Iranian or Venezuelan oil. It’s sold through a capped system to curb profiteering by Western countries. If the U.S. wanted to ban Russian oil, it would have, but it didn't due to market needs.'
Source: aajtak
India's Focus on Russian Oil
India denied allegations of becoming a center for refining Russian oil. Industry sources stated that India has been the world's fourth-largest refiner for decades. Crude oil refining and fuel export are essential global processes. Post-ban on Russian crude, Europe now relies on Indian diesel and jet fuel.
On whether refineries are exporting profits, sources clarified that nearly 70% of refined fuel caters to domestic demand. Reliance’s refinery has maintained export-focus since 2006, long before this conflict. With rising domestic use, refined fuel exports have, in fact, decreased.
