New Delhi, Jan 5 (.) As the United States intensifies pressure on countries purchasing Russian oil, India is being pushed towards a decisive policy shift, with continued ambiguity likely to result in higher trade costs, according to a report by the Global Trade Research Initiative (GTRI).
The report said India is entering a “critical decision phase” as the threat of increased US tariffs sharpens. While New Delhi has not officially announced a halt to Russian oil imports, recent developments suggest growing constraints on its energy trade choices.
Notably, following the US sanctions imposed in October on Russian energy giants Rosneft and Lukoil, major Indian refiners, including Reliance Industries and several state-owned firms, announced a halt to Russian oil purchases to avoid secondary sanctions.
However, imports have not stopped entirely, with lower volumes continuing from non-sanctioned suppliers, placing India in what the report described as a strategic grey zone.
Further, Senator Lindsey Graham also said that US tariff pressure has already pushed India to significantly reduce its purchases of Russian oil, arguing that the move is weakening Moscow’s ability to sustain its war effort in Ukraine and demonstrating the effectiveness of tariffs as a foreign policy tool.
While addressing the reporters, Graham credited the 25 percent tariff imposed by Trump on India for buying Russian crude, saying the measure had produced visible results.“I really do believe what he did with India is the chief reason India is now buying substantially less Russian oil,” he said.
Meanwhile, Trump has repeatedly warned that tariffs on India could be raised further if New Delhi fails to curb Russian oil purchases.
Trump has said Prime Minister Narendra Modi “knew he was not happy” with India’s purchases of Russian oil. “Modi is a good guy. He knew I was not happy, and it was important to make me happy,” Trump said.
He has said Prime Minister Narendra Modi was aware of his displeasure over India’s energy trade with Moscow.
“They do trade, and we can raise tariffs on them very quickly,” Trump said.
Notably, the US doubled import tariffs on Indian goods to 50 percent last year as a “punishment” for its heavy buying of Russian oil. Despite the hefty tariffs, India’s exports to the US leapt in November.
. VK SQ .