Indian refiners plan to keep buying Russian oil despite risk of US tariffs

The legislation and escalating tensions in West Asia pose a fresh challenge to India’s energy security, with the country importing about 90% of its oil needs. Higher crude prices could widen the import bill, while potential US tariffs on buyers of Russian oil threaten to disrupt a key supply source. Russian oil accounts for as much as 35% of India’s imports, according to the people.

“The strategic impact of the US retaining the option of imposing a 100% tariff will be felt in the India-US bilateral relationship over the long term,” said C. Uday Bhaskar, director at the Society for Policy Studies. “Can US President Trump afford to have two major energy-exporting regions—West Asia and Russia—closed to the market, even as he prepares his party for the midterm elections? These factors will shape the future trajectory of the 100% tariff option.”