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'Good actors': Why US ‘allowed’ India to purchase Russian oil despite tariff tensions
She added that the US approved this decision as this Russian oil coming to India was “already at sea”.
The White House, on Tuesday, once against stated its reasoning behind “allowing” India to purchase Russian oil. Speaking to reporters, press secretary Karoline Leavitt stated that the decision, which has approved by US President Donald Trump and US Treasury Department comes as “our allies in India have been good actors”.
“We came to this decision as our allies in India have been good actors and had previously stopped buying sanctioned Russian oil.so as we work to appease this temporary gap of oil supply on the world because of the Iranians, we have temporarily permitted India to accept Russian oil,” said Leavitt.
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She added that the US approved this decision as this Russian oil coming to India was "already at sea" and will "not provide significant financial benefit to the Russian government."
India ‘allowed’ to purchase Russian oil
Earlier this month, US Treasury Secretary Scott Bessent also stated that India would be allowed to purchase Russian oil amid the oil supply crisis caused by the ongoing conflict in West Asia. A waiver was also signed by President Trump
“Indians have been very good actors, they stopped buying Russian Oil when we ordered them, now we are allowing them to accept Russian Oil to create supply," Bessent told FOX News.
Also Read | ‘To take a little pressure off’: Trump on US waiver to India for Russian oil purchase amid Iran war
This remark from Bessent comes after the US and India announced the framework of their trade deal, which saw a reduction of tariffs on New Delhi from 50 per cent to 18 per cent. India was initially marked up at 25 per cent tariffs under Trump's ‘liberation day’ exercise.
This was later raised to 50 per cent by Trump as a penalty for India's purchase of Russian oil, as he accused New Delhi of “fuelling the war in Ukraine”.
However, with the US-India trade deal, the White House stated that the tariff on India has been reduced based on commitment from New Delhi to reduce and halt its purchase of Russian oil.
India has not explicitly stated it will halt its purchase of Russian oil, but has stated that in a “volatile energy market environment, New Delhi will continue to prioritise it's population of 1.4 billion.”
US-Iran war sparks oil crisis
The ongoing conflict between the US, Israel and Iran in West Asia has sparked a crisis in the oil and energy industry after supply lines were hit. Due to the war-like conflict, Iran announced it will be closing the Strait of Hormuz, a vital route through which 20 per cent of the world's oil and gas supply passes through.
Most oil exports from OPEC producers such as Saudi Arabia, Iraq, Kuwait, the UAE and Iran, move through this strait, primarily to Asia. Qatar also sends almost all its LNG exports through these waters.
Due to this impact on supply lines, Asian countries, including India, are now reviewing ways to save fuel.
In India, the central government has formed a grievance-redress committee and taken steps to ramp up the supply of liquefied petroleum gas (LPG) amid reports of a shortage of commercial-use cylinders in several parts of India.
As per a statement from the Ministry of Petroleum and Natural Gas, India will be prioritising domestic LPG use and has asked refineries to increase production. Non-essential and commercial use of LPG is now under review.
