WASHINGTON: Indian Prime Minister Narendra Modi has pledged to stop buying oil from Russia, says U.S. President Donald Trump, though the move will take time.
Following this, Trump said he would next try to get China to do the same as Washington intensifies efforts to cut off Moscow’s energy revenues.
India and China are the two top buyers of Russian seaborne crude exports, taking advantage of the discounted prices Russia has been forced to accept after European buyers shunned purchases and the U.S. and the European Union imposed sanctions on Moscow for its invasion of Ukraine in February 2022.
India’s purchases of Russian oil have been a sticking point in the relationship between Washington and New Delhi besides trade tariff, and the Trump administration was quite “unhappy with New Delhi’s purchases of Russian crude,” because it allowed Moscow to continue waging its “ridiculous war” in Ukraine. Trump slapped additional tariffs of 25% on India back in August, raising the total levy to 50%, while India has called out the U.S. for its trade with Russia.
“If India doesn’t buy [Russian] oil, it makes [ending the war] much easier,” Trump said. “They assured me within a short period of time, they will not be buying oil from Russia, and they will go back to Russia after the war is over”, a CNBC report added.
India is one of the biggest buyers of Russian oil. Data from research firm Kpler shows Russia exports about 3.35 million barrels of crude per day, with India taking about 1.7 million and China 1.1 million.
New Delhi has defended those purchases, as it helped India stabilize global energy prices and was encouraged by the U.S. to do so.
“If people or countries had stopped buying at that stage, the price of oil would have gone up to 130 dollars a barrel. That was a situation in which we were advised, including by our friends in the United States, to please buy Russian oil, but within the price cap,” CNBC said quoting Puri.
Russian sales of crude oil have been placed under a price cap by the G7 nations and the European Union since Moscow’s 2022 invasion of Ukraine.
That price cap, set at $47.6 per barrel, aims to limit Moscow’s revenue from oil exports, constricting the country’s ability to finance its war in Ukraine.
