Nepal UK
Picture: Reuters
Moscow/London – Russia's oil exports to India are expected to increase in September, even as the United States imposes heavier tariffs to pressure New Delhi to cut its ties with Moscow. The U.S. government, led by President Donald Trump, recently raised tariffs on Indian goods to 50% in response to India's continued purchases of discounted Russian oil.
India has become a key customer for Russian oil since the 2022 invasion of Ukraine led to Western sanctions. This has allowed Indian oil companies to buy crude at a cheaper price. Officials in Washington have accused India of "profiteering," while Indian officials counter by pointing to the fact that Western countries continue to buy other Russian goods.
Analysts believe India is unlikely to significantly reduce its Russian oil imports, as the trade is a core part of its energy strategy. According to trading sources, Indian refiners will increase their purchases by 10-20% next month. Without India's demand, Russia would struggle to maintain its oil revenues, which are vital for funding its government and military.
This situation has been complicated by recent events in Russia. Ukraine has attacked ten Russian oil refineries, which has reduced Russia's ability to process its own crude into fuel. This means Russia has more raw oil to sell to countries like India.
The EU has also tightened its price cap on Russian oil, setting it at $47.60 per barrel from September 2. This new rule restricts access to Western shipping and insurance services for oil sold above the cap. The full impact of these new tariffs and rules may not be seen in India until October.
