New Delhi, January 24, 2025: US Treasury Secretary Scott Bessent has said there is a possible “path” to remove the 25 per cent tariffs imposed on India over its purchase of Russian oil, asserting that New Delhi’s imports from Moscow have sharply declined following the US action.
The remarks come amid strained India–US ties after President Donald Trump imposed sweeping 50 per cent tariffs on Indian goods, including a specific 25 per cent levy linked to India’s Russian oil purchases. Bessent described the measure as effective, claiming it had achieved its intended outcome.
“We put 25 per cent tariffs on India for buying Russian oil, and the Indian purchases by their refineries of Russian oil have collapsed. So that is a success,” Bessent said in an interview with Politico. He added that while the tariffs remain in place, there is now a possibility of withdrawing them. “I would imagine that there is a path to take them off. So that’s a check and a huge success,” he said.
Bessent also criticised European countries for not adopting a similar approach, accusing them of prioritising trade negotiations with India over coordinated pressure on Russian energy exports. He alleged that European nations continued to indirectly fund Russia’s war in Ukraine by purchasing refined petroleum products from India that were made using discounted Russian crude.
Before the Ukraine conflict, Russian oil accounted for just 2 to 3 per cent of India’s crude imports. According to Bessent, that share rose sharply after sanctions led to heavy discounts, reaching nearly 20 per cent at its peak and generating significant profits for Indian refiners. He claimed that European buyers later emerged as major importers of the refined products.
Reacting to the US tariffs earlier, India had termed the move “unfair, unjustified and unreasonable,” while reiterating that its energy decisions are driven by national interest and the need to ensure affordable supplies.
Recent data suggests a shift in India’s sourcing strategy. India slipped to third place among buyers of Russian fossil fuels in December after major refiners, including Reliance Industries and state-owned companies, significantly cut crude imports from Russia, according to the Centre for Research on Energy and Clean Air.
Meanwhile, India and the European Union are expected to soon announce the conclusion of negotiations on a long-pending Free Trade Agreement, adding another layer to the evolving global trade and energy dynamics.
