Synopsis
India is carefully studying Trump's announcement and its implications for the country's energy purchases from Moscow, sources added. While Trump's phone call with Prime Minister Narendra Modi on September 30 was described as good, the Trump administration has not taken a conclusive decision yet on any waiver under the Russia and Iran Sanctions Act (SRIA).
ReutersA view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia
NEW DELHI: India is studying and reviewing President Donald Trump's announcement of the US decision to purchase diesel from Russia, even as Washington threatens to impose 100% tariffs on India under the Russia and Iran Sanctions Act for purchasing Russian oil.
Trump's decision to purchase Russian diesel may not explicitly violate the Russia and Iran Sanctions Act, and Washington may devise a concession for itself, senior sources, speaking on condition of anonymity, told ET. The move to purchase Russian diesel while sanctioning India for buying Russian oil may appear hypocritical. However, the Trump administration may carve out an exemption to implement its decision to import Russian diesel, sources explained.
India is carefully studying Trump's announcement and its implications for the country's energy purchases from Moscow, sources added. While Trump's phone call with Prime Minister Narendra Modi on September 30 was described as good, the Trump administration has not taken a conclusive decision yet on any waiver under the Russia and Iran Sanctions Act (SRIA).
Also Read: Trump’s diesel deal with Putin may be lots of barrels but little bang
During several conversations with the US over the past few months, New Delhi had explained to its interlocutors that sanctioning India under SRIA would adversely affect bilateral ties, which have already been strained by delays in concluding a trade pact and growing US-Pakistan ties.
Under the agreement with President Vladimir Putin, Russia will immediately supply more than 300,000 tonnes of diesel, followed by another 500,000 tonnes in November, then 1 million tonnes "immediately thereafter" and a further 3 million tonnes, depending on refinery conditions, according to the US President.
The move is being seen as an outreach to American voters ahead of the midterm elections.
Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST! Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority. This is a very big and important announcement," the US President Donald Trump wrote on Truth Social.
Diesel prices in the US and Europe have risen amid fuel supply constraints through Hormuz. Attacks on Russia's oil and gas infrastructure have further complicated the situation. Trump has, in fact, advised the Ukrainian President to stop attacks on Russia's oil infrastructure.
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