RIL, Nayara in US tariff crosshairs on exposure to Russia, Venezuela

Marquee Indian energy companies led by Reliance Industries (RIL) and Russian Rosneft-run Nayara Energy are exposed to the tariff policies of American President Donald Trump because of their purchase of discounted crude oil from Russia and Venezuela and sizeable export revenues from fuel sales to the United States (US).

- S DINAKAR

Trump on April 2 announced a 10 per cent across-the-board tariff on imports from all nations, and in addition imposed reciprocal tariffs on countries that run huge trade surpluses with the US. For India, the import tax was 26 per cent, half the 52 per cent that the US said was the average tariff charged by India on US products. Neighbouring China got 34 per cent, and, after including the existing 20 per cent, it totals 54 per cent.

RIL and Nayara may get a reprieve for now, thanks to lobbying by the American Petroleum Association, which left out energy from the tariff list. Crude oil, refined products, and gas imports have been exempted from reciprocal tariffs because Trump wants to protect domestic pump prices, said Singapore-based energy expert Vandana Hari, offering a lifeline to India's exports of petroleum products worth $5 billion—around 7 per cent of India's exports to the US. Hari expects the exemption on energy products to continue.