Lower US tariffs to offset India's Russia oil shift, says Nomura

ECONOMISTS SEE 25% PUNITIVE RUSSIAN OIL LEVY MAY END BY NOV

- RAGHAVENDRA KAMATH

RECALIBRATION OF DISCOUNTED Russian oil imports by Indian companies should be more than offset by gains from lower US tariffs, Nomura said.

Nomura economists Sonal Varma and Aurodeep Nandi said the shift away from Russian oil following US sanctions could pave the way for a trade deal with Washington and a reduction in tariffs.

The economists expect the 25% punitive levy on purchases of Russian oil to be removed after November, while the reciprocal 25% tariff will remain through the fiscal year ending March. US tariffs on India currently include a 25% reciprocal duty and a 25% penalty for buying Russian oil.