US secondary tariff threat may sour India's love affair with Russian oil
NEW DELHI: The US threat to slap penal tariffs on countries buying Russian oil may sour India's love affair with those barrels as the benefit of discounts would be far outweighed by the cost to its merchandise exports to America at a time both countries are discussing a trade deal.
President Donald Trump on Tuesday announced 100% tariff on Russian exports, including oil, and an equivalent secondary tariff on countries importing Russian shipments to be imposed after a 50-day deadline for Moscow to end the war with Ukraine.
The fine print of Trump's plan and how it will pan out remain sketchy at this point. But the oil market took the announcement calmly as the long deadline dispelled worries over immediate supply disruption, leaving benchmark Brent crude below $70/barrel.
Indian refiners have been lapping up Russian oil at discounts since February 2022 as others shunned those barrels due to Western sanctions on Moscow imposed after its invasion of Ukraine. Russia currently accounts for a third of India's oil imports, against less than 1% before the war.
Things may be different this time if Trump carries through with his threat. This is because, as reports in western media said, secondary tariff will apply to the country and affect all merchandise exports, unlike in the case where only the entities doing business with sanctioned Russian entities are penalised.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Jag stänger ner. 70% rabatt - Utförsäljning (sista kollektionen)
Handmakarens rapport
LÄS NU
Undo
If that is the case, Indian refiners will have no other way than pivot towards its traditional West Asian and suppliers and new players such as Brazil to make up for lost Russian supplies. These new barrels will, however, come at a higher cost — ranging between $4-5/barrel.
Arranging alternative supplies will not be difficult as 'there is enough enrgy available in the world,' according to oil minister
Hardeep Singh Puri
. 'Oil prices are still between $65 and $70,' he said on the sidelines of a seminar on education on Tuesday.
The government had approached two major West Asian oil producers to examine additional supplies through their alternative evacuation routes if the fear of disruption in shipping through the Strait of Hormuz came true during the recent Israel-Iran war.
Industry watchers said Indian refiners are likely to tank up on cheap Russian oil during the deadline period the way they had done during the srael-Iran conflict while tying up alternative supplies.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
26 minutes ago
- India.com
Russia Strikes Oil Jackpot Beneath Antarctica – Is This End Of Saudi Arabia's Throne? A Global Energy War Now Looms
Moscow/New Delhi: A startling discovery beneath the frozen edges of the planet has set off waves of concern, awe and speculation. Russian scientists claim to have found one of the world's largest reserves of crude oil (an estimated 511 billion barrels) buried deep under Antarctica's icy crust. This massive figure not only dwarfs known reserves but also raises pressing questions about future global power struggles, environmental risks and the fate of long-standing international agreements. Conducted in the Weddell Sea region by Russia's state-backed geological agency Rosgeo, the survey revealed oil reserves that exceed the total volume of crude ever extracted by humans. This discovery, experts warn, could shift the world's energy balance and turn Antarctica from a scientific sanctuary into the next geopolitical battlefield. Although Russia insists the mission was purely scientific, the timing and scale of the discovery are prompting alarm. Under the 1959 Antarctic Treaty, all military or commercial exploitation of natural resources on the continent remains strictly prohibited. Several observers suspect that Moscow's intentions extend beyond peaceful research. A Brewing Global Flashpoint? The area where this oil lies is part of the British Antarctic Territory, a region that also sees claims from Chile and Argentina. These overlapping claims now carry added weight as interest grows among nations sensing a resource opportunity buried under ice. What was once a cold and silent expanse of cooperation might soon witness contesting flags and strategic maneuvers. During the Cold War, 12 countries signed the Antarctic Treaty to keep the continent shielded from military and commercial rivalry. Today, over 50 countries are part of that pact. None have so far challenged the treaty's core rule of non-extraction until now. Experts such as Professor Klaus Dodds from Royal Holloway University argue that Russia's survey is a smokescreen for deeper ambitions. He called the oil mission a 'thinly veiled attempt' to open the door to future drilling – warning that tapping into a 500-billion-barrel reserve could tilt the global energy market on its head. Melting Ice, Uncovering Riches As Antarctica's glaciers slowly retreat due to rising global temperatures, the continent's hidden layers are coming into view. With over 70% of the world's freshwater frozen beneath its surface, Antarctica's thaw poses both a climate risk and a resource temptation. Environmentalists fear that exploiting such massive fossil fuel reserves could have devastating consequences. Extracting oil on this scale would not only breach the treaty but could also accelerate climate change beyond control. Some scientists have already begun calling the discovery a potential 'death sentence for the planet' if countries attempt to access and burn that much carbon fuel. Despite this, voices within the geopolitical arena suggest that a scramble could be imminent. Global powers, hungry for new energy sources and strategic leverage, may begin circling the icy continent with more than just research in mind. A New Era for Antarctica? As nations weigh the discovery's implications, the future of Antarctica hangs in a fragile balance. What was once a land of scientific cooperation now faces the looming shadow of resource-driven conflict. The Russian oil discovery may have just opened a new and colder front in the global race for energy and the world is watching.
Mint
26 minutes ago
- Mint
TSMC quarterly profit seen hitting record but Trump tariffs, forex a concern
Analysts expect a 52% surge in second-quarter profit TSMC benefiting from surge towards AI Earnings call at 0600 GMT TAIPEI, - TSMC, the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels on Thursday, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a key supplier to Nvidia and Apple, is forecast to report net profit of T$377.4 billion for the three months through June 30, according to an LSEG SmartEstimate compiled from 21 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. The company will report the headline profit figure at 0530 GMT which will be followed by an earnings call from 0600 GMT that will include third-quarter guidance. TSMC has already flagged a rise in second-quarter revenue of 38.6%. Any profit result above T$374.68 billion would mark the company's highest-ever quarterly net income and its sixth consecutive quarter of profit growth. It remains unclear just how much U.S. President Donald Trump's tariffs will affect TSMC. Taiwan was threatened with a 32% reciprocal tariff rate in April but has yet to be notified of an updated figure that some countries have received. Trump also said this month that tariffs on semiconductors are likely to come soon. The company said in June that U.S. tariffs were having some indirect impact, noting they can lead to slightly higher prices, which may in turn weigh on demand. In March, TSMC announced a $100 billion investment in the U.S. alongside Trump at the White House, on top of $65 billion pledged for three Arizona plants - two of which have been built. Another key issue is the Taiwan dollar's 12% appreciation against the greenback so far this year. TSMC has said a 1% appreciation in the Taiwan dollar typically reduces its gross margin by 0.4 percentage points. In June, the company said that strengthening in the Taiwan dollar had shaved more than 3 percentage points off its gross margin. Shares in TSMC surged some 80% last year but have climbed just 5% for the year to date on worries about tariffs and unfavourable currency exchange rates. This article was generated from an automated news agency feed without modifications to text.
India Today
26 minutes ago
- India Today
Khamenei warns of 'even bigger blow' to US and Israel if attacked again
Iran's Supreme Leader, Ayatollah Ali Khamenei, has once again warned the United States and Israel amid rising pressure on Tehran over its nuclear activities. Speaking on state television Wednesday, Khamenei said, "The fact that our nation is ready to face the power of the United States and its dog on a leash, the Zionist regime, is very praiseworthy."Khamenei referred to Iran's strike on the US Al Udeid Air Base in Qatar, saying it was "just the beginning" and warned that "an even bigger blow could be inflicted on the US and others." His comments came the West continue to push for fresh nuclear negotiations while also considering the possibility of reimposing sanctions on MISSILE STRENGTH STILL A CONCERNDespite recent Israeli strikes on Iranian nuclear and military facilities -- including a destructive hit on the Fordow nuclear site in June -- US intelligence has assessed that while Iran's nuclear ambitions may be delayed by up to two years, its missile and drone capabilities remain mostly intact. According to Bill Roggio, a senior fellow at the Foundation for the Defence of Democracies (FDD) and editor of the Long War Journal, Iran still possesses around 1,500 medium-range ballistic missiles and roughly 50 percent of its launch SAYS HE'S 'IN NO RUSH TO TALK'Amid ongoing tensions, US President Donald Trump has adopted a cautious tone on the issue. Speaking to reporters Tuesday, Trump said he remains open to negotiations but added, "I'm in no rush to talk."NUCLEAR TALKS UNCERTAIN AS SANCTIONS THREATENMeanwhile, Western nations have made it clear that if Iran fails to make progress on talks with the US by the end of the summer, they may activate the "snapback" sanctions — a provision under the 2015 nuclear deal allowing the re-imposition of international sanctions if Iran fails to Foreign Ministry told Fox News Digital, "A sustainable and verifiable diplomatic solution that addresses the security interests of the international community is essential. If such a solution is not achieved by the end of the summer, the snapback mechanism will remain an option for the E3."The E3 refers to France, Germany, and the United Kingdom — the three European countries involved in the 2015 nuclear agreement known as the Joint Comprehensive Plan of Action (JCPOA). "We continue to coordinate closely with our E3 partners on this issue," the German ministry added.- EndsWith inputs from ReutersMust Watch
