India’s Commerce Minister Piyush Goyal once again put the ball in the court of the Ministry of External Affairs when he was asked about negotiations on Russian oil as part of a bilateral trade agreement between India and the US.
When asked in an ANI interview, “if there is no bilateral consensus on Russian oil or defense, does it not impact the trade deal?”, Goyal replied with a simple “No”.
When further asked how this is possible, Goyal said, “…Buying oil or LNG, LPG from the US is in India’s own strategic interest as we are diversifying our oil sources. But the decision is taken by the buyers, the companies themselves. So the trade agreement does not discuss who will buy what and from where. The trade agreement ensures that preferential access to your trade is smooth today, preferential access to your trade is smooth…when we got 18% reciprocal tariff, we have priority before other developing countries which are usually our competition…”
Indian refiners shun Russian oil: Report
Indian refiners are avoiding purchases of Russian crude for delivery in April and are expected to hold off on such deals for longer, refining and trade sources told Reuters, which could help New Delhi seal a trade pact with Washington.
The US and India moved closer to a trade pact on Friday, announcing the framework for a deal they hope to conclude by March that would lower tariffs and deepen economic cooperation.
Indian Oil, Bharat Petroleum and Reliance Industries are not accepting offers from traders to load Russian crude in March and April, a trader who approached refiners said, according to Reuters.
However, those refiners have already scheduled some deliveries of Russian crude for March, refining sources said. Most other refineries stopped buying Russian oil.
The three refineries and the oil ministry did not respond to requests for comment, Reuters reported. The trade minister referred questions about Russian oil to the foreign ministry on Saturday.
A State Department spokesman said: “Diversifying our energy sources in line with objective market conditions and evolving international dynamics is at the heart of our strategy” to ensure energy security for the world’s most populous nation.
What Trump’s order says
Although the US-India trade framework statement did not mention Russian oil, President Donald Trump lifted his 25% tariffs on Indian goods, imposed on purchases of Russian oil, because, he said, New Delhi was “committed directly or indirectly to stop” imports of Russian oil.
His executive order, titled “Adjustment of Obligations to Address Threats to the United States by the Government of the Russian Federation,” states: “India has committed to halting direct or indirect imports of oil from the Russian Federation, said it will purchase United States energy products from the United States, and recently committed to creating a framework with the United States to expand defense cooperation over the next 10 years.”
The order clearly states that the 25% tariffs will be reimposed on India “if the (US) Commerce Secretary finds that India has resumed direct or indirect imports of oil from the Russian Federation”.
New Delhi has not announced plans to stop importing Russian oil.