India US tariff: Will India stop buying oil from Russia after Trump's warning to impose penalty?
Recently, US President Donald Trump has announced to impose a 25 percent tariff on India as well as a penalty for buying oil and military equipment from Russia.
Even after this diplomacy of Trump, India is firm on its stance. It has been made clear by India that the country's big oil companies will continue to buy oil from Russia. There will be no hindrance in this.
Indian oil companies continue to purchase oil from Russia. Some media reports indicate that major oil companies in the country are still engaged in these transactions. US President Donald Trump said that he had learned India had stopped buying oil from Russia. However, Indian oil companies have clarified that this information is not accurate and have denied the claims.
Russia produces about 9.5 million barrels of oil daily
India's decision to buy oil from Russia is based on price factor, quality of crude oil, stock, logistics and other economic factors. India has continued to buy oil from Russia because Russia is the world's second largest crude oil producer. Russia produces about 9.5 million barrels of oil daily and exports 4.5 million barrels of crude oil and 2.3 million barrels of refined products.
India took advantage of the opportunity in 2022
In March 2022, due to the fear of Russian oil going out of the market, the price of Brent crude had gone up to $ 137 per barrel. At such a time, India took advantage of the opportunity and used its sources properly. After which cheap energy could be obtained, that too while fully following international rules.
India defended its right to formulate energy policy
US President Donald Trump had earlier claimed that India could stop buying oil from Russia and called it a great step by India, but India defended its right to formulate energy policy keeping in mind its national interest.
India has never banned Russian oil and neither the US or the EU has been able to ban it. Indian oil marketing companies are not buying oil from Iran and Venezuela, which have been banned by the US.
Prakash Kumar Pandey