Trump's Sanctions On Russia: Impact On India's Oil Imports

U.S. Sanctions on Russian Oil Companies

U.S. President Donald Trump has imposed new sanctions on two large Russian oil companies, Rosneft and Lukoil. The move comes in wake of increasing tensions over Russia's involvement in ending the conflict with Ukraine. These sanctions have attracted the world's attention, particularly from India, which is a big consumer of Russian crude oil.

India's Reaction to the Sanctions

After the U.S. declaration, Indian public sector oil corporations are said to be examining their agreements with Russian suppliers. According to media reports, bodies such as Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) are likely to reassess their purchases of oil. Reliance Industries, with a long-term agreement with Rosneft, could also look into altering its import policy.

Current Trade Situation

Since the outbreak of the Ukraine war, Western nations have imposed a number of sanctions on Russia. In this time, India started importing Russian crude at discounted rates, becoming a vital market for Moscow. Based on international analytics statistics, Russia shipped approximately 2 million barrels per day to India in June this year, which slightly fell to 1.8 million barrels per day in October.

Possible Changes in U.S.-India Trade Relations

Reports say that President Trump has also raised tariffs on Indian products for India's continued Russian oil purchases. If India, however, cuts its Russian crude imports, it could seal a new trade agreement with the United States. In this agreement, the existing 50 percent tariff rate would fall to 15–16 percent, enhancing the terms of trade for the two countries.