The Ministry of External Affairs of India emphasized that the country will continue to secure the energy needs of its population and will insulate itself against U.S. efforts to limit the export of Russian oil and gas, much of which goes to India. The ministry warned that any action by Washington affecting energy security concerns could sour bilateral relations.
New American Tariffs
According to the new sanctions bill, tariffs of 100% will be imposed on importers of Russian energy goods. This statement was issued following the passage of a new anti-Russian sanctions bill that includes tariffs for countries that continue to cooperate with Russia. The aim of these sanctions appears to be to limit Russia's export revenues in order to compel the country to end the war in Ukraine. However, so far, the sanctions have not achieved the desired results.
Russian Oil Imports to India
India is one of the largest buyers of Russian oil. In August, crude oil imports from Russia accounted for over 50% of India's total oil imports, marking the highest share of Russian oil in India's oil import mix. Last month, Russia exported 2.47 million barrels per day of crude oil to India, representing a 62.4% increase compared to last year and accounting for 50.83% of total oil imports as the third-largest oil buyer in the world.
Before the onset of the war in the Middle East, India was recognized as the second-largest buyer of Russian crude oil, benefiting from discounts created by Western sanctions. Currently, the price of Russian crude oil has risen due to supply constraints from the Middle East. India continues to purchase oil as no cheaper alternatives are available.
India has close diplomatic relations with Russia but is also recognized as a key U.S. ally in Asia. This dual position of India makes the country act cautiously in the face of international pressures while seeking to preserve its economic and energy interests.
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