Path to Remove 25% Russian Oil Tariffs for India
US Treasury Secretary Scott Bessent has recently pointed out a potential way to remove the 25% tariffs that the United States imposed on India's purchase of Russian oil. This statement comes as leaders from the European Union land in Delhi, where India and the EU are set to announce the conclusion of a significant trade deal.
Bessent shared his insights during an interview with Politico, stating that the tariffs have led to a drastic decline in Indian refiners' purchases of Russian oil. He emphasized that while this is a success for the US, the tariffs remain in place. He expressed optimism that there is a path to remove them, which could change the dynamics of oil imports for India.
In the context of US and EU relations, Bessent took a jab at European allies, criticizing their reluctance to impose similar tariffs on Russian oil. He noted that before the Ukraine invasion, only about 2-3% of India's oil came from Russia, but this figure had surged to nearly 17-19% as refiners capitalized on deeply discounted Russian crude. He pointed out that European countries have been the ones buying the refined products, indirectly funding the conflict.
The timing of Bessent's remarks is crucial, as the EU is on the verge of finalizing a trade agreement with India, which EU chief Ursula von der Leyen has dubbed the “mother of all deals.” This agreement is seen as a strategic move to reduce reliance on China, Russia, and the US.
As the US continues to impose heavy tariffs, India and the EU have made significant progress in their negotiations, closing nearly 20 of the 24 chapters required for the trade deal. In contrast, India's imports from Russia have dropped by over 18% from April to October 2025 compared to the previous year, while imports from the US have surged by 62% during the same period.
Additionally, Indian public sector refiners have signed a one-year deal for American liquefied petroleum gas (LPG) imports, highlighting a shift in India's energy procurement strategy. As the geopolitical landscape evolves, India's relationship with both the US and EU will be pivotal in shaping its energy future and economic stability.
