Goyal Sidesteps Russian Oil Question, Highlights Trade Deal Benefits
India's Commerce Minister Piyush Goyal has once again deferred questions regarding Russian oil negotiations to the Ministry of External Affairs, while discussing the ongoing India-US bilateral trade agreement. In an interview with ANI, when asked if disagreements on Russian oil or defense matters could impact the trade deal, Goyal responded with a firm "No." He elaborated that the trade agreement focuses on creating smooth pathways for commerce and ensuring preferential access, rather than dictating specific purchase decisions by companies.
Trade Deal Emphasizes Market Access Over Import Sources
Goyal explained that India's strategic interests in diversifying oil sources, such as buying crude oil, LNG, or LPG from the US, are separate from the trade deal's objectives. He emphasized, "The trade deal doesn't discuss who will buy what and from where. It ensures that the pathway to trade is smooth and provides preferential access. Free Trade Agreements (FTAs) are all about gaining an edge over competition." He highlighted that India's recent 18% reciprocal tariff advantage offers a preference over other developing nations, which are typically its competitors in global markets.
Indian Refiners Reportedly Avoid Russian Oil Amid Trade Talks
According to a Reuters report, Indian refiners are avoiding purchases of Russian oil for delivery in April and are expected to continue this trend, a move that could facilitate the finalization of the India-US trade pact. Sources in refining and trade indicated that major companies like Indian Oil, Bharat Petroleum, and Reliance Industries are not accepting offers for Russian oil loading in March and April, although some scheduled deliveries for March remain in place. Most other refiners have also halted buying Russian crude, though the oil ministry and these companies have not commented on the matter.
US-India Trade Framework and Energy Strategy
The US and India announced a framework for a trade deal on Friday, aiming to conclude negotiations by March to lower tariffs and enhance economic cooperation. While the framework does not explicitly mention Russian oil, it aligns with broader strategic discussions. A foreign ministry spokesperson stated, "Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy" to ensure energy security for India, the world's most populous nation.
Trump's Executive Order and Tariff Implications
President Donald Trump recently rescinded 25% tariffs on Indian goods that were imposed over Russian oil purchases, citing India's commitment to stop directly or indirectly importing Russian oil. His executive order, titled 'Modifying Duties to Address Threats to the United States by the Government of the Russian Federation,' notes that India has pledged to purchase US energy products and expand defense cooperation. However, the order warns that tariffs could be reinstated if India resumes importing Russian oil, highlighting the ongoing diplomatic and economic pressures.
New Delhi has not officially announced plans to halt Russian oil imports, maintaining a focus on energy diversification as part of its national security strategy. The interplay between trade negotiations, energy policies, and international relations continues to shape India's economic landscape.
