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India’s Russian Crude Imports Fall Amid Possible United States Tariffs
India buys a large amount of oil from other countries.
Its purchases of Russian oil decreased in August and may decrease again in September.
India is considering buying more oil from spot markets for October and November.
It is also importing oil from Iraq, the United Arab Emirates, and Saudi Arabia.
India says it wants to protect its energy supply by buying from different sellers.
The United States is considering sanctions and tariffs against countries that buy Russian oil.
These measures are intended to reduce Russia’s energy income during the war in Ukraine.
India has warned that such tariffs could harm its relationship with the United States.
Russia says the sanctions could also make peace talks about Ukraine more difficult.
India’s imports of Russian crude fell in August and could decline further in September.
Iraqi oil imports rose about 25% to approximately 171,000 barrels per day.
United Arab Emirates imports fell 5.4%, while Saudi Arabian imports rose 1.5% in August.
Indian refiners are exploring spot-market supplies for October and November amid tariff concerns.
A United States sanctions bill targeting Russia could authorize tariffs of up to 100% on Russian-oil buyers.
- Who
- India, Russia, the United States, and other oil suppliers and buyers.
- What
- India’s Russian crude imports declined in August and may fall further as possible United States tariffs create pressure.
- Where
- India’s oil supply is being sourced from Russia, Iraq, the United Arab Emirates, Saudi Arabia, and other markets; ADNOC is using terminals at Fujairah and Sohar.
- When
- The decline occurred in August, with a possible further reduction in September; refiners are planning for October and November.
- Why
- India is responding to energy-security needs and possible United States tariffs on countries purchasing Russian oil.
India and Russia’s Position
United States’ Position
Russian oil purchases
India and Russia’s Position
India says it will continue sourcing oil from diverse sellers according to market conditions and has emphasized energy security. Russia opposes additional sanctions and says they are unfriendly actions.
United States’ Position
The United States is pursuing sanctions and possible tariffs to reduce countries’ dependence on Russian oil and cut Russia’s energy revenue.
Effect on diplomacy
India and Russia’s Position
India has warned that tariffs on Russian oil could damage bilateral relations with the United States. Russia’s Kremlin says sanctions could make efforts to reach a peace deal in Ukraine more difficult.
United States’ Position
The United States House of Representatives passed a sanctions package intended to increase economic pressure on Russia over its war in Ukraine.
Key facts
- Iraqi oil imports
- Rose about 25% to approximately 171,000 barrels per day.
- United Arab Emirates imports
- Fell 5.4% from July to about 620,000 barrels per day.
- Saudi Arabian imports
- Rose 1.5% to 328,000 barrels per day.
- Potential tariffs
- The proposed United States sanctions package authorizes tariffs of up to 100% on countries buying Russian oil and gas.
- India’s response
- Indian refiners are examining spot-market supplies for October and November.
- ADNOC shipping
- ADNOC is moving oil from fields inside the Strait of Hormuz to storage and export terminals at Fujairah and Sohar.
- Trade relations
- India warned that new tariffs on Russian oil purchases could affect its relationship with the United States.
Sources
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