DAVOS: US Treasury Secretary Scott Bessent at Davos on Friday (local time) hinted that the additional 25% tariffs on India might be removed after India's purchases of Russian oil have significantly dropped due to a 25% tariff imposed by the US, calling it a "huge success."
He made the remarks during a conversation with Politico, amid a geopolitical landscape surrounding Indian oil imports, US tariffs, and EU trade ambitions that has reached a critical flashpoint.
Bessent told Politico that Indian refinery purchases of Russian oil have "collapsed" due to US tariffs, hinting that, while tariffs remain in place, a diplomatic "path" exists to remove them, provided India shifts its energy sourcing and asserted that these trade measures provide tangible benefits to the American economy.
"We put a 25 percent tariff on India for buying Russian oil, and the Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. I would imagine there is a path to take them off, so that's a check and a huge success", Bessent told Politico.
New Delhi remains firm on its "India First" energy policy, despite a proposed US Congressional bill that could hike duties to 500% and emphasized that India's priority is securing affordable energy for its 1.4 billion citizens.
Bessent also criticized European countries for buying refined Russian oil from India, saying they're "financing the war against themselves," labelling their trade behaviour an "act of irony and stupidity."
He argued that by purchasing refined petroleum products from India (made from Russian crude), Europe is indirectly financing Russia's war effort.
"Just to be clear, let's understand what's happening. Before the Ukraine invasion, approximately 2-3 percent of Indian oil that went into its refineries came from Russia. The oil was sanctioned. It got deeply discounted and moved up into the high teens- 7, 18, 19% was being refined. Huge pro, huge profits from the refiners. But in the ultimate act of irony and stupidity, guess who was buying the refined products from the Indian refineries made from Russian oil? The Europeans. They are financing the war against themselves. They are financing the Russian", Bessent told Politico. (ANI)
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