Moscow, Aug 9 (IANS) US President Donald Trump’s imposition of tariffs on India is both “unfair and unworkable”, especially when Europe remains the world’s largest importer of Russian energy in dollars and the biggest contributor to Russian revenues, a report in Britain’s leading newspaper has cited.
“It’s not just Trump’s hypocrisy that has the Indians up in arms – it’s the unfairness of being punished for breaking no laws. Russian oil exports are not sanctioned by the EU or the US, but they are subject to a price cap designed to keep world oil supply steady while limiting the profits to the Kremlin,” a report in the UK’s Telegraph newspaper highlighted.
It stated that India has adhered to the rules by purchasing Russian oil at capped prices, refining it, and exporting a significant portion to the European market. However, the problem lies, if India were to stop buying Russian crude, a worldwide oil price panic would quickly follow. At present, Moscow ranks as the world’s second biggest oil exporter after Saudi Arabia, shipping 4.5 million barrels of crude daily to international markets.
According to the report, in March 2022, shortly after Russia invaded Ukraine, concerns over Russian oil being pushed out of the market caused Brent crude prices to surge to $137 per barrel – nearly twice the projected prices of 2025. Analysts warn that a similar panic would drive the price to $200 per barrel.
“The eighteenth (and latest) European sanctions package supposedly bans the import of refined oil products originating from Russian crude. But as well as being technically impossible to verify, exceptions have been made for Canada, Norway, Switzerland, the UK, and the US, rendering the supposed ‘ban’ toothless. And let us not forget that Russian gas is not sanctioned or price-capped at all,” the report titled ‘Trump’s reckless trade war with India could crash Europe’s weak economies’ by leading British writer and historian Owen Matthews detailed.
It also mentioned the Trump administration’s top Russia negotiator and US Special Presidential Envoy Steve Witkoff visiting Moscow for talks recently amid the US President’s ultimatum to Russian President Vladimir Putin demanding a ceasefire in Ukraine.
“Witkoff, a real estate developer and golfing buddy of Trump’s, brings no Russia expertise to the table. But he will deliver the one concrete threat that his boss in the White House has articulated – to impose trade tariffs on India to punish it for importing Russian oil,” the report noted.
–IANS
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