The US involved in the Ukraine War has imposed heavy tariffs on India, including a 25 percent Aadhaar tariff and an additional fine of 25 percent on purchasing oil from Russia. These high American tariffs have not only affected India’s exports badly, but have also made relations between the two largest democracy in the world. However, after Trump’s move, India has definitely changed its strategy.
On the other hand, American trade representative Jamison Greer has made an important statement regarding the purchase of Russian oil by India. He said that the purchase of Russian oil by India is not the basic basis of the Indian economy. He further said that India is now moving towards diversifying its energy sources. Greer clarified that India is a sovereign country and has the right to determine its energy policy and international relations itself.
During a dialogue at the Economic Club in New York, Greer said, “India has not always bought so much oil from Russia.” “India have always had strong relations with Russia, but in the last two-three years, India has started buying Russian oil for both consumption and refinement and resale.”
Variety in oil procurement
He said that it is not a fundamental or permanent part of India’s economy. They believe that India is understanding this and is now taking steps to diversify its energy supply. Greer further said that America does not decide which countries should have relations or not. America is not imposing anyone with whom it should do business with.
The Trump administration says that India’s procurement of crude oil from Russia indirectly supports Russia’s war against Ukraine. Asked about the impact of the new tariff on India, Greer said that they were implemented a few weeks ago. He said that India has a $ 40 billion trade surplus with the US – which means that India exports more than imports from America.
He further stated that talks on the trade agreement between the US and India have been going on since the early days of the Trump administration. “This additional 25% fee is due to a recent increase in oil procurement from Russia,” said Greer, “he emphasized that President Donald Trump is focusing on ending the Russia-Ukraine war.”
India is also putting pressure on China
“We are putting pressure on Putin as much as possible. We have also talked to our European colleagues – some of them are still buying Russian oil, which is quite contradictory. We are talking not only to India, but also to China. We have to end this war,” he said.
On the other hand, India’s official attitude is that its energy purchase is determined by its national interest and market conditions. After the Russia-Ukraine War began in February 2022, when Western countries banned Russia and banned its supply, India began buying Russian oil at a discount. The US expresses concern over the purchase of Russian oil by India, but also admits that India takes independent policy decisions. Meanwhile, India says that its energy policy is inspired by economic practicality and national interests and not political pressure.