If Trump stops India from buying Russian oil, Putin will press this 'vein' of America; messing with it will be costly!

US-India Trade: Imposing a complete ban on Russia could prove to be risky for the Trump administration. India started buying large quantities of oil from Russia from 2022 only after sanctions were imposed on Russia by Europe.

Russian oil to India: US President Donald Trump is constantly targeting India. He is angry about the oil being bought from Russia. He even said that India should stop buying Russian oil. Donald Trump may be imposing tariffs but all this is not going to be that easy for him. India is the third largest oil importer in the world. India has been buying about 2 million barrels of oil per day from Russia since 2022. This is about 2 percent of the global supply. If this supply stops, it will not only affect India. Russia will also be affected. 

 

If this happens, oil prices will jump..

Actually, news agency Reuters quoted a report by JP Morgan and said that if India does not buy Russian oil, Russia can shut down the US-led CPC pipeline from Kazakhstan. US giants like Chevron and Exxon have stakes in this pipeline. If this happens, global oil prices can jump tremendously. It can go above $ 80 per barrel.

 

 

 

 

 

35% oil requirement from Russia

India started buying large quantities of oil from Russia from 2022 only after sanctions imposed on Russia by Europe. Currently, India meets 35% of its oil requirement from Russia. The annual value of which is around $ 50.2 billion. Russian company Rosneft is also a shareholder in a large refinery in India. Indian refineries buy several Russian grades of oil such as Urals, Aspo and Arctic.

 

If India stops buying Russian oil, it will have to import oil from American and Gulf countries or reduce the amount of refining. This can affect the prices of diesel in Europe because fuel is exported from India there. Apart from this, Russia will also suffer financial loss because it will have to keep the stock of oil in ships and will have to give huge discounts to new buyers.

 

On the other hand, to deal with this situation, Russia can divert exports to countries like Egypt, Malaysia, Pakistan, Peru and South Africa. But it will not be easy to find an alternative to a big customer like India. If Russia also closes the CPC pipeline and stops supplying oil to India, then the total supply of 3.5 million barrels per day will stop which is 3.5% of the global supply. In such a situation, it may prove risky for the Trump administration to impose a complete ban on Russia.

 

FAQ

Q1: Why did Trump threaten to stop Russian oil imports from India?

Ans: Trump wants Russia to make a peace agreement with Ukraine, otherwise he will impose 100% tax on countries buying oil from Russia.

Q2: What will be the impact if India does not buy Russian oil?

Ans: This will increase India's oil cost, reduce refining and global oil prices may increase.

Q3: What steps can Russia take in this situation?

Ans: Russia can shut down the CPC pipeline which can cause huge losses to American companies.