Indian companies stopped ordering Russian oil: 5 big companies including Reliance will not buy Russian oil from December; Trump will reduce tariffs on India

India has made a big cut in the purchase of crude oil from Russia for delivery in the month of December. According to Bloomberg report, the country’s five major refiner companies have not placed any new orders for December.

This decision has been taken amid US sanctions and India-US trade talks. In August, US President Donald Trump had imposed 50% tariff on India for buying Russian oil.

After this he banned all transactions with Russia’s state oil companies Rosneft and Lukoil. These restrictions are coming into effect from November 21.

Reliance, BPCL, HPCL did not place orders for oil purchase.

Reliance Industries, Bharat Petroleum, Hindustan Petroleum, Mangalore Refinery and HPCL-Mittal Energy did not place new orders to Russia for December. These companies have accounted for two-thirds of India’s Russian imports so far this year.

Only Indian Oil (IOC) and Nayara Energy are buying Russian oil for December. IOC is buying from non-sanctioned suppliers, while Nayara, in which Russia’s Rosneft has a 49% stake, is completely dependent on Russian supplies.

India is now looking for alternative suppliers

Russia has accounted for about 36% of India’s oil supply this year, but refineries are now looking for alternatives. IOC has bid to purchase 24 million barrels of oil from the US and other regions in January-March. At the same time, Hindustan Petroleum has purchased 40 lakh barrels of oil from America and West Asia for January.

Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) have met Indian officials and assured to continue the supply.

Trump will reduce tariffs on India

US President Donald Trump on Monday said India and the US are close to finalizing a new trade agreement. He said that America will gradually reduce the tariffs imposed on India.

On the question of reducing tariffs on India, Trump said that high tariffs were imposed on India because of buying Russian oil, but now India has greatly reduced the purchase of Russian oil. He said, ‘Yes, we will reduce the tariff.’

50% US tariff on India, penalty on buying oil from Russia

Trump has imposed a total of 50% tariff on India so far. There is a 25% reciprocal i.e. tit-for-tat tariff and a 25% penalty on purchasing oil from Russia.

The reciprocal tariff came into effect from August 7 and the penalty from August 27. America has imposed economic sanctions on India to put pressure on Russia.

Trump has many times claimed that Russia promotes war in Ukraine with the money received from India’s oil purchases.

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