India-US trade deal is contingent on India curbing its Russian crude oil imports, US trade negotiators have reportedly told Indian officials. Trade officials from the United States have informed India’s negotiators that a curb in Russian oil imports is essential for lowering India’s tariff rates and finalising a trade agreement, sources told Reuters.Last month, President Donald Trump increased tariffs on Indian products to 50% of which 25% tariffs are of India’s crude oil imports from Russia. India responded firmly, maintaining its position on Russian purchases and describing US actions as “unfair, unjustified and unreasonable.”A US official told the news agency that whilst trade talks with India were progressing well, further discussions were necessary to resolve American concerns about market access, trade imbalances and India’s ongoing procurement of Russian oil.According to a Bloomberg report, US trade representatives emphasised to their Indian colleagues that addressing the Russian oil issue was essential for reducing India’s tariff rates and finalising a trade agreement. Despite positive dialogue this week, no major progress was achieved, according to the report.
Who bought Russia’s fossil fuels after EU bans
Commerce Minister Piyush Goyal, leading the Indian delegation, proposed increased purchases of American defence and energy products as concessions, the report said. On Wednesday, Goyal expressed India’s willingness to increase energy imports from the US “in the years to come.”Also Read | Trump’s 100% pharma tariffs: How bad will India’s pharmaceutical exports be hit? ‘Low-cost generic model may offer cushion’The trade discussions in the US from September 22-24 were productive, with both parties discussing potential agreement parameters, according to the Commerce Ministry statement.Goyal conducted meetings with US Trade Representative Jamieson Greer and Sergio Gor, Trump’s India ambassador nominee. The minister also engaged with Indian business leaders and investors during his visit.
Reducing Russian crude imports: India eyes Iran oil?
In a separate report, Bloomberg said that India has asked US to allow it to import oil from Iran and Venezuela. Russia started offering discounted oil prices following international sanctions related to the Ukraine conflict. India, which imports about 90% of its oil needs, has benefited from reduced import costs through Russian supplies. Iranian and Venezuelan oil could offer comparable price benefits.The report indicated that Indian refiners would need US nod to import crude from sanctioned nations like Iran and Venezuela if they were to significantly reduce Russian oil purchases.The visiting delegation conveyed their message during talks with Trump officials, the report said.Also Read | Trump’s H-1B visa fee hike impact: Germany, UK, Canada roll out red carpet for India’s tech talent; pitch ‘predictable’ rulesThose familiar with the negotiations revealed that Indian officials highlighted how simultaneously limiting their refiners’ access to Russian, Iranian and Venezuelan oil could lead to a global price increase.Meanwhile, Petroleum Minister Hardeep Singh Puri on Friday said that Russian crude oil purchases face no sanctions, whilst cautioning about severe global implications if these supplies face disruption.He referenced Iran and Venezuela as examples, noting that India has consistently adhered to international sanctions as a responsible global community member.Puri highlighted Russia’s position as the global second-largest crude supplier, delivering approximately 10 million barrels daily, whilst emphasising potential worldwide ramifications of supply interruptions.“Energy is something you cannot do without … If you remove the second-largest producer, you will have to cut consumption. The consequences are pretty serious,” Puri said.Also Read | India’s exports to US plunge! Not just goods hit by Trump’s 50% tariffs, even smartphones see ‘alarming’ dip; what’s happening?
