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‘Funding Putin’s war machine’: US again on India's purchase of Russian oil, despite Trump-Modi bonhomie
US treasury calls on G7, EU to impose tariffs on China, India over Russian oil purchases
US-India trade deal talks are back on after some mutual admiration between President Donald Trump and Prime Minister Narendra Modi, but the US treasury again on Friday said India's purchase of oil from Russia is “funding Putin’s war machine” against Ukraine.
The treasury on Friday called on the Group of Seven and European Union allies to impose "meaningful tariffs" on inward trade with China and India. It also convened a G7 meeting on finances specifically to discuss how pressure could be stepped up on Moscow to end the war.
"Chinese and Indian purchases of Russian oil are funding Putin’s war machine and prolonging the senseless killing of the Ukrainian people," a US Treasury spokesperson said in an emailed statement to Reuters.
"Earlier this week, we made it clear to our EU allies that if they are serious about ending the war in their own backyard, they need to join us and impose meaningful tariffs that will be rescinded the day the war ends," the spokesperson added.
This means top American officials and institutions continue with mixed signals on tariffs and trade talks.
On Thursday, Sergio Gor, President Donald Trump's pick for the next envoy to India, said Washington and Delhi are “not that far apart on a deal on these tariffs”. But President Trump is “crystal clear” on a key issue, he added: “Getting India to stop buying Russian oil is a top priority for this administration… I do think it will get resolved in the next few weeks."
US commerce secretary Howard Lutnick also on Thursday repeated the Russia-related condition. In a CNBC interview, he was asked what trade issue he was most focused on, to which he said: “Well, we're going to sort out India… once they stop buying Russian oil.”
India currently faces 50% as tariff rate on its exports to the US, half of which have been imposed as “penalty” for buying oil from Russia.
The US believes if India stops the oil purchases, that'll squeeze Russia's revenue and force a stop to the war in Ukraine. The US has not acted against China on the same count. India has repeatedly said its oil purchases are simply driven by national interest and better prices, factors that did not bother the US earlier.
Trade talks have resumed after Trump and PM Narendra Modi recently had social-media exchanges of mutual admiration. Yet, this sticking point remains.
India has been making eastward moves — including a thaw with China — after Trump's tariffs strained the relations. Besides meeting President Xi Jinping, Modi stressed India's historic relations with Russia by meeting Russia's Vladimir Putin too, at a multi-nation summit two weeks ago in China.
On China, Gor listed as his top priority “to ensure India is pulled into our side and away from them (China)”.
