NEW DELHI, Aug 20: Russia will continue to supply crude oil to India, now at a 5 percent discount, despite the pressure and sanctions on the latter from the US.
Deputy trade representative of Russia to India, Evgeniy Griva said, “There will be a 5 per cent discount, subject to negotiation, on Russian crude oil purchases by India.”
Griva added that, “Despite the political situation, approximately the same level of oil will be imported by India.” He said, “As for discounts, it’s a commercial secret. I think, because it’s usually just dialogue between businessmen and approximately usually 5%. It’s fluctuating, but usually it’s plus-minus 5%.”
He was joined by Russian Deputy Chief of Mission Roman Babushkin, who said although it was a “challenging situation” for New Delhi, “we have trust in our ties.” He also said, “We are confident that India-Russia energy cooperation will continue notwithstanding the external pressure.”
The US had accused India of funding the war in Ukraine by purchasing Russian oil and has imposed 50 per cent tariffs on New Delhi for buying oil from Russia. “India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” White House trade adviser Peter Navarro had said.
India had condemned the “unfair, unjustified and unreasonable” move by the US, which is likely to hit sectors such as textiles, marine and leather exports hard. The Prime Minister Narendra Modi earlier had said New Delhi would not back down in the face of economic pressure.
On Tuesday, Karoline Leavitt said that US President Donald Trump imposed tariffs on India to deter Russia from pursuing the Ukraine conflict. Leavitt, during her press briefing, said the intent behind the sanctions was to put secondary pressure on Russia.
“Look, the president has put tremendous public pressure to bring this war to a close. He’s taken actions, as you’ve seen, sanctions on India and other actions as well. He’s made himself very clear that he wants to see this war end, and he has scoffed at the ideas of others that have been raised that we should wait another month before any meeting takes place” she said.
The US earlier threatened sanctions on Moscow and secondary sanctions on countries that buy its oil if no moves are made to end the war in Ukraine. China and India are the top two buyers of Russian oil.
(Manas Dasgupta)
