India beats Trump at his own tariff game as Russia now offers even bigger oil discounts; here’s how it happened

New Delhi: US President Doland Trump imposed a tariff of 25% on India(BHARAT) for importing oil from Russia. India(BHARAT) had been purchasing Russian oil at a discounted price. After India(BHARAT)n PM Narendra Modi and Russian President Vladimir Putin had a long discussion on the sidelines of the SCO Summit in Tianjin, China, the price of Russian oil has dropped to a discount of $3 to $4 per barrel for India(BHARAT).

Price of Russia’s Ural grade oil falls further for India(BHARAT)

The price of Russia’s Ural grade is being offered at a lower price for cargoes that will load in late September and October, says a Bloomberg report. This means that now, after the imposition of US tariffs, India(BHARAT) will get Russian crude at an even more reduced price. India(BHARAT) was already purchasing oil from Russia at a cheaper rate.

What is Russia’s Urals grade?

Russia’s “Urals grade” refers to the Urals blend, a mix of heavy, high-sulfur oil from the Urals and Volga regions and lighter oil from Western Siberia. It serves as Russia’s primary export oil grade and is used as the benchmark for pricing most Russian oil sales on the international market, often at a discount to Brent crude oil due to its lower quality.

The trio of India(BHARAT), Russia, and China

The Trump administration had doubled India(BHARAT)’s tariffs to 50 per cent in what it termed a penalty for buying Russian oil and indirectly fuelling the Ukraine war. India(BHARAT) became a major importer of Russian crude in 2022, just about at the same time that the Russia-Ukraine war started. Due to America’s strict attitude, India(BHARAT) has found new partners in Russia and China.

Prime Minister Narendra Modi, at the Shanghai Cooperation Organisation (SCO) summit in Tianjin, China, said that Russia and India(BHARAT) share a “special” relationship and also held a meeting with Chinese President Xi Jinping, where the two countries pledged to be partners, not rivals.

White House advisor Peter Navarro criticises India(BHARAT)

“Before Putin invaded Ukraine, India(BHARAT) didn’t buy Russian oil to speak of- very, very small amounts. What happened? Now, Russian refiners provide discounts, India(BHARAT) refines it, and then sells it at a premium to Europe, Africa and Asia. It fuels the Russian war machine,” said White House advisor Peter Navarro in a scathing criticism of India(BHARAT). India(BHARAT) has retorted by saying that there are no sanctions that prohibit oil purchase. It added that the US itself has not banned Russian oil.

HIGHLIGHTS

• US President Doland Trump imposed a tariff of 25% on India(BHARAT) for importing oil from Russia.
• India(BHARAT) and Russia beat Trump at his own tariff game.
• India(BHARAT)n PM Modi and Russian President Putin had a long discussion on the sidelines of the SCO Summit in Tianjin, China.
• The price of Russia’s Ural grade is being offered at a lower price for cargoes that will load in late September and October.

The Trump administration had doubled India(BHARAT)’s tariffs to 50 per cent in what it termed a penalty for buying Russian oil and indirectly fuelling the Ukraine war. India(BHARAT) became a major importer of Russian crude in 2022, just about at the same time that the Russia-Ukraine war started. Due to America’s strict attitude, India(BHARAT) has found new partners in Russia and China.