Explainer: Why India’s Russian oil imports sparked US tariffs amid Ukraine peace talks
Summary
India, the world's third-largest oil importer, faces US tariffs due to increased Russian oil imports amid Ukraine war tensions. India prioritizes energy security and affordability despite diplomatic pressure.
Key Points
- India is the world's third-largest oil importer and the largest buyer of Russian seaborne crude.
- The US imposed additional tariffs of 25% on Indian goods in response to India's increased purchases of Russian oil, citing support for Russia's war in Ukraine.
- India buys discounted Russian oil to reduce crude import costs and diversify from Middle Eastern oil sources.
- Top Indian private refiners Reliance Industries and Nayara Energy are major buyers of Russian oil; India also imports from the US and Middle East to balance supply.
