India's largest oil refinery has purchased millions of barrels of oil from the United States and the United Arab Emirates, according to Bloomberg. Importantly, this came amid threats by US leader Donald Trump to impose high tariffs on buyers of Russian oil.
Points of attention
- India's refineries have faced scrutiny for allegedly supporting Russia during the war in Ukraine, prompting them to reconsider their oil procurement strategies.
- Donald Trump's threats of secondary tariffs on Russian oil buyers have influenced India's decision to reduce reliance on Russian oil and seek alternative sources.
Trump's threats are having an effect
As journalists managed to find out, the state-owned company Indian Oil purchased at least 5 million barrels of American oil in addition to 2 million barrels supplied from Abu Dhabi.
The media is noting that the purchases were both large and relatively urgent by the company's usual standards.
In addition, it is noted that state-owned refiners in India were ordered earlier this week to develop plans for purchasing non-Russian oil.
Indian refineries have been in the spotlight for the past two weeks after the European Union and the United States accused them of supporting Russia during the war in Ukraine through the purchase of Russian oil.
What is important to understand is that US leader Donald Trump has repeatedly threatened to impose secondary tariffs on buyers of Russian oil.
He also singled out India earlier this week, saying it would pay an additional economic penalty for its current purchases.
