Donald Trump is following through on his threat and doubling tariffs on India. The reason: the country obtains “huge amounts of oil from Russia.” This is affecting Kremlin oil prices, and Russia now wants to sell its barrels at low prices. Ukraine’s Foreign Intelligence Service (SZRU) is reporting a drop in trade prices for Russian oil. A barrel of Urals crude is now $1.50 cheaper than a barrel of Brent, according to the SZRU. The cause is reduced sales to India, the intelligence service says.
The Kremlin is now trying to sell the accumulated volumes in other markets, with China in particular as one of the country’s main targets. However, for Beijing, importing even more Urals oil is not appealing. Russia could be forced to give away its oil at even lower prices, “NTV” writes. China Cannot Offset the Loss of Sales India’s state-owned companies, Indian Oil Corporation and Bharat Petroleum Corporation Limited, have suddenly purchased 22 million barrels from other sources such as the Middle East or the United States as a result of Trump’s threat.
The drop in sales caused by sanctions on Moscow cannot be offset by China alone, according to the SZRU. “Chinese state-owned companies are refraining from large-scale increases in purchases due to the risk of new U.S. sanctions,” the intelligence service said. Trump Doubled the Tariffs This is likely the first consequence after U.S. President Donald Trump announced he would double tariffs on Indian imports from 25 to 50 percent. Trump signed the decree last week. The surcharge will take effect at the end of August. He claims that India imports “directly or indirectly oil from the Russian Federation.
” Due to the war in Ukraine, this poses a security risk to the United States. The aim of the new U.S. punitive tariffs is to reduce Russian oil revenues, which significantly contribute to funding the war of aggression against Ukraine. In his decree, Trump described the war as an “unusual and extraordinary threat to the national security and foreign policy of the United States.”
India as the First Victim of Trump’s Sanctions Last year, India was the largest buyer of Russian oil after China, importing nearly 36 percent of its crude from the Kremlin. Before Russia launched its attack on Ukraine, that figure was only two percent. Daily imports amounted to around 1.8 million barrels. India is the first country against which the U.S. president is imposing so-called secondary sanctions. China, Brazil, and EU countries such as Hungary or Austria also continue trading with Russia. Trump had originally threatened those countries with tariffs “of around 100 percent.”
