Russian oil purchases not bedrock of Indian economy: US trade official

Jamieson Greer's remarks come at a time when India and the US have resumed negotiations to address the trade barriers after President Donald Trump imposed a 50 per cent tariff on India

US Trade Representative Jamieson Greer has said that India's purchase of Russian oil is not a bedrock of its economy, adding that the country is starting to diversify its energy purchases, news agency PTI reported.

 

Greer made these remarks during a conversation hosted by The Economic Club of New York. He said that New Delhi will make its own decisions, and Washington is not dictating to other countries on who they can have relations with.

 

"India has not always bought so much Russian oil. They've always had strong relationships with Russia, but it's really in the past two or three years that they started buying Russian oil at a discount, not only for consumption, but also for refining and resale," he said.

 

 

Greer's remarks come at a time when India and the US have resumed negotiations to address the trade barriers after President Donald Trump imposed a 50 per cent tariff on India, of which the 25 per cent was a "reciprocal" tariff and the additional 25 per cent was for its continued purchase of Russian oil.

Trump tariffs on India

 

The additional tariffs on India were imposed at a time when Washington had been trying to broker a deal between Russia and Ukraine, and Trump met leaders of the two countries a week apart. While Trump claimed that China must also be slapped with additional tariffs, Washington excluded Beijing from its tariffs and instead urged the European Union and G7 to impose sanctions and tariffs on China and India to pressure Russian President Vladimir Putin to come to the negotiating table.

Greer's remarks echo Peter Navarro's claims

 

Greer's remarks are also reflective of the statements made by White House trade advisor Peter Navarro who, on multiple occasions, accused India of fuelling Putin's war in Ukraine and called the Ukraine war "Modi's war".

 

Navarro, in an opinion piece in The Financial Times published in August, claimed how India-Russian oil mathematics work. Speaking to PBS News, Navarro claimed India does not really need Russian oil, adding that before Russia invaded Ukraine in February 2022, India imported less than one per cent of its oil from Russia, whereas now it imports around 35-40 per cent.

 

Explaining this surge of imports, the US trade advisor said back then, "To be clear, this surge has not been driven by domestic oil consumption needs. Rather, what really drives this trade is profiteering by India’s Big Oil lobby. Refining companies have turned India into a massive refining hub for discounted Russian crude."

Greer on the impact of 50 per cent tariffs on India

 

Responding to the impact of 50 per cent tariffs on India, Greer said that levies in India have been in place for some time now. He further said that New Delhi has a trade surplus of $40 billion with Washington, and they already have a great deal with the US.

 

"They sell us a lot more than we sell to them. That being said, the Indians are being pragmatic," he added.

 

Trump focused on ending the Russia-Ukraine war: Greer

 

Greer emphasised that Trump’s priority is to bring an end to the Russia-Ukraine war. “We’re working to ensure that President Vladimir Putin faces maximum pressure,” he said. “We’ve even spoken with our European allies, some of whom are still buying Russian oil, which is unbelievable. So it’s not just India we’re engaging with on this issue; we’ve also discussed it with China. The goal is to end the war, and once stability is restored, we can have a different conversation about Russian oil", he added further.

India defends Russian oil purchase

 

Ever since Trump and members of his administration have accused India of fuelling Putin's war, New Delhi has maintained that its purchase of Russian oil is based on its national energy needs and market dynamics.