A top US official has accused India of financing Russia’s war in Ukraine by purchasing oil from Moscow, sparking a heated debate about the implications of such transactions. Stephen Miller, deputy chief of staff at the White House and one of President Donald Trump’s most influential aides, expressed strong disapproval of India’s actions in an interview with Fox News.
Miller emphasized that Trump’s message was clear: “It is not acceptable for India to continue financing this war by purchasing the oil from Russia.” The US has slapped a 25% tariff on Indian products as a result of its purchase of military equipment and energy from Russia, with threats of additional penalties if India continues to buy arms and oil from Moscow. Trump has also threatened 100% tariffs on US imports from countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine.
Despite the US pressure, Indian government sources have indicated that New Delhi will continue to buy oil from Moscow. The Indian Ministry of External Affairs described its relationship with Russia as “steady and time-tested” and emphasized that it should not be viewed through the prism of a third country. India’s ties with Russia date back to the Soviet era, with Russia being the leading supplier of oil and defense equipment to India.
The US move has sparked concerns about the potential impact on the global oil market. Industry experts suggest that if the US imposes tariffs on Russian oil imports, India might be forced to cut down on oil imports from Russia and increase imports from other suppliers, primarily traditional West Asian suppliers like Iraq, Saudi Arabia, and the United Arab Emirates. This could lead to higher costs for India and potentially disrupt the global oil market.
Analysts are divided on the motivations behind the Trump administration’s tough stance on India. Some believe it’s aimed at pressuring Russia, while others see it as a pressure tactic to get New Delhi to agree to terms set by Washington, particularly in ongoing trade talks. The US wants to reduce its trade deficit with India, which stands at $45 billion.
The situation highlights the complexities of global geopolitics and trade dynamics. As the US continues to pressure India to reduce its ties with Russia, New Delhi must balance its relationships with both the West and Russia. The outcome will likely have significant implications for the global oil market and India’s energy security.