US Treasury Secretary Scott Bessent said Indian refinery purchases of Russian crude had “collapsed” due to tariffs imposed by the US. While the tariffs remain in place, he hinted at a diplomatic “path” to remove them if India adjusts its energy sourcing
Scott Bessent suggested that the EU avoided similar tariffs on India to protect the upcoming FTA. Pic/X
US Treasury Secretary Scott Bessent on Friday (local time) suggested that the 25 per cent tariffs on India could be removed after Indian purchases of Russian oil dropped significantly following the US-imposed levy, calling the outcome a “huge success”, news agency ANI reported.
Speaking to Politico amid global discussions on Indian oil imports, US tariffs, and European Union’s (EU’s) trade ambitions, Bessent said Indian refinery purchases of Russian crude had “collapsed” due to tariffs imposed by the United States (US). While the tariffs remain in place, he hinted at a diplomatic “path” to remove them if India adjusts its energy sourcing, asserting that the trade measures offer tangible benefits to the American economy.
“We put a 25 per cent tariff on India for buying Russian oil, and the Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. I would imagine there is a path to take them off, so that's a check and a huge success,” Bessent told Politico.
The remarks come as the US Congress considers a bill proposing a 500 per cent duty on countries importing Russian oil. India, however, has maintained its stance on ensuring “affordable energy” for its population of 1.4 billion under its “India First” energy policy.
Reacting to the proposed legislation, Ministry of External Affairs (MEA) Spokesperson Randhir Jaiswal said, “We are aware of the proposed bill. We are closely following the developments,” during a weekly press briefing.
Bessent also criticised European countries for buying refined Russian oil from India, saying they were “financing the war against themselves” and calling it an “act of irony and stupidity”, ANI reported.
Bessent slams Europe for buying Indian-refined Russian oil
“Just to be clear, let's understand what's happening. Before the Ukraine invasion, approximately 2-3 per cent of Indian oil that went into its refineries came from Russia. The oil was sanctioned. It got deeply discounted and moved up into the high teens—7, 18, 19 per cent. Huge pro, huge profits from the refiners. But in the ultimate act of irony and stupidity, guess who was buying the refined products from the Indian refineries made from Russian oil? The Europeans. They are financing the war against themselves. They are financing the Russian,” Bessent said.
Meanwhile, EU-India trade talks are underway, with a Free Trade Agreement (FTA) described by European Commission President Ursula von der Leyen as “the mother of all deals,” covering a market of 2 billion people and 25 per cent of global gross domestic product (GDP).
Bessent suggested that the EU avoided similar tariffs on India to protect the upcoming FTA, saying, “I will also point out that our virtue signalling European allies refused to do it because they wanted to sign this big trade deal with India.”
The 16th EU-India summit in New Delhi will adopt a new comprehensive strategic agenda, with von der Leyen visiting next weekend to finalise the deal.
Speaking at the World Economic Forum in Davos, she emphasised Europe’s intention to expand trade and international cooperation: “There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals. One that would create a market of 2 billion people, accounting for almost a quarter of global GDP.”
Von der Leyen added that Europe remains open to global business partnerships, highlighting India’s role as an indispensable economic partner despite the Russian oil controversy, ANI reported.
(With ANI inputs)
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