Trump Tariffs Defuse US Sanctions on Russian Oil, Favor India

May Neutralize Sanctions Enforced in Jan on Russian Oil Exports

- S DINAKAR

Indian refiners are staring at an unexpected upside from US President Donald Trump's high global tariffs, which are neutralizing stringent sanctions enforced in January by the US on Russian oil exports, government and refining officials said.

Russia is India's biggest supplier of oil. Also, a large price cut by Saudi Arabia, India's third largest oil supplier, for May loadings to Asia and a higher-than-expected increase in OPEC output, partly prompted by volatility in the oil market from Trump's tariffs, stand to benefit Indian state-run refiners, refining officials said. Indian Oil, Bharat Petroleum and Hindustan Petroleum, among others, had agreed to term contract extensions this year with Iraq, Saudi Arabia and UAE, which together supply 40 percent of India's crude oil.

India is in a sweet spot, a top government official told Business Standard, as not only have oil prices crashed but Russian oil is down to $50 per barrel levels, leaving Washington's sanctions on Russian oil toothless.