India is actively ramping up its purchases of Russian oil, despite pressure and criticism from the United States. White House trade advisor Peter Navarro has sharply criticized this policy, accusing India of funding Russia’s war against Ukraine and labeling it as “Modi’s War.”
This is reported by Finway
Increase in Imports and India’s Role in the Global Oil Market
Indian refineries plan to increase their purchases of Russian oil by 10–20% in September compared to August. This amounts to an additional 150,000–300,000 barrels per day. According to estimates, in the first twenty days of August, India’s import of Russian oil remained at 1.5 million barrels per day, the same as in July, although this is slightly below the average of 1.6 million barrels per day for the first half of the year. Thus, India remains the leading buyer of Russian oil by sea, sourcing about 40% of its oil from the Russian Federation.
Economic Benefits and Consequences for Exports
Indian company Oil and Natural Gas Corporation has reported that its refineries will continue to purchase Russian oil as long as prices remain competitive. Since the onset of Russia’s full-scale war against Ukraine, India has managed to save around $17 billion by purchasing cheaper Russian crude.
However, against the backdrop of rising imports of Russian oil, the US has imposed a 50% tariff on Indian goods, which could lead to a reduction in Indian exports to the US by more than 40% – nearly $37 billion annually. The United States remains the largest foreign market for Indian goods.
Indian refineries are set to increase their purchases of Russian oil by 10-20% in September compared to August, which translates to 150,000 – 300,000 barrels per day. Without India, it would be difficult for Russia to maintain its exports at the current level.