Trump-Putin meet, Asim Munir's nuke rant, China & more: What this global turbulence means for India
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Indian Express
10 minutes ago
- Indian Express
Trump's tariffs have forced no change in Indian refiners' Russian oil import strategy, say top officials
The additional 25 per cent tariff on Indian goods announced by US President Donald Trump earlier this month has had no bearing on Indian refiners' Russian oil import strategy, and purchases continue to be guided purely by economic and commercial considerations, according to top officials at India's public sector refiners. While there has been a slowdown in oil imports from Russia—India's largest supplier of crude oil—in recent weeks, which was being seen by some industry watchers as a signal from New Delhi to Washington, officials in India's refining sector maintain that the reduction is primarily due to discounts on Russian crude narrowing considerably, and not due to threats by the US or any other reason. Indian refiners' hefty imports of Russian crude have surfaced as a major irritant for the Trump administration. Earlier in August, Trump announced an additional 25 per cent tariff—over and above the 25 per cent tariff announced on Indian goods—as a penalty for India's Russian oil imports. New Delhi has called the targeting of India over the purchase of Russian oil 'unjustified and unreasonable' and said these imports began as its traditional supplies were diverted to Europe, with the US having 'actively encouraged such imports by India for strengthening global energy markets stability'. 'We have not received any instruction or indication (from the government). We are continuing with our crude procurement strategy based on economics. It was and continues to be a commercial exercise… No special effort is being made to either increase or decrease (oil imports from Russia). We are buying crude as per economic considerations,' said Arvinder Singh Sahney, chairman of IOC, which is India's largest refiner. Sahney's comments echo what Vikas Kaushal, chairman and managing director of Hindustan Petroleum Corporation (HPCL)—another public sector refiner—had said last week. ''It's not that we are not buying Russian crude; those decisions are still open. It's just that whatever is economical will be bought,' Kaushal had said. Although Russian oil's share in IOC's oil import basket contracted in April-June from around 30 per cent in the year-ago quarter, Sahney said that the reduction was due to a contraction in discounts on Russian crude, and not for any other reason. The share of Russian crude in IOC's total oil imports in the April-June quarter was around 24 per cent, and Sahney expects a similar level to be maintained going forward. He said that there could be some variation based on the economics and discount levels—purchases may rise if discounts deepen, or dip a bit if discounts contract. India's second-largest public sector refiner BPCL expects Russian oil to maintain its share of 30-35 per cent in the company's oil import basket as long as there are no sanctions imposed on Moscow's oil, its director (finance) Vetsa Ramakrishna Gupta said in a post-earnings investor call on Thursday. 'Our crude procurement from Russia was around 34 per cent during the first quarter. Only slightly it has reduced over the past month, but we are expecting flows will come back to the normal level of 30-35 per cent…As long as there are no new sanctions on Russian oil, our procurement strategy would be having around 30-35 per cent of Russian crude,' Gupta said, adding that the discount on Russian crude had contracted to just around $1.5 per barrel, which had led to import volumes dipping a bit as Moscow's oil lost much of its price advantage over competing crude grades. BPCL bought oil from geographies like West Africa, Latin America, and the US to replace some of the Russian volumes. India has stated over the years that as a country that depends on energy imports, it will buy oil from wherever it gets a good deal, as long as the oil is not under sanctions. To be sure, Russian oil is not under sanctions, and is only subject to a price cap imposed by the US and its allies that applies if Western shipping and insurance services are used for transporting the oil. 'Even today, there is no sanction on Russian crude…there is only a price cap, and till we honour the price cap, there is no violation by Indian refiners. We have been honouring the price cap and there is no change in our strategy,' Sahney said. The renewed pressure from the US and other Western powers—pressuring Russia's top trade partners to cut down on imports from the country—is aimed at forcing the Kremlin's hand into ending the Ukraine war. For Trump, who wants the three-year-old Russia-Ukraine war to end within days, this is an opportune time to pressure India over its Russian imports, given the protracted trade pact negotiations between New Delhi and Washington. When Russia invaded Ukraine in February 2022, Moscow's share in New Delhi's oil imports was less than 2 per cent. With much of the West shunning Russian crude following the invasion, Russia began offering discounts on its oil to willing buyers. Indian refiners were quick to avail the opportunity, leading to Russia—earlier a peripheral supplier of oil to India—emerging as India's biggest source of crude within a matter of months, displacing the traditional West Asian suppliers. Russia now accounts for 35-40 per cent of India's total oil imports by volume. Despite the noise from sections of the West against India over the country's hefty purchases of Russian crude, this shift in oil and petroleum product trade had Washington's blessings, as the US wanted energy markets to remain stable and well-supplied, according to various US officials who served in the Joe Biden administration.
Indian Express
10 minutes ago
- Indian Express
Additional 25% US tariff levy depends on how geopolitical events unfold: Official
Clarity on the next 'negotiating round' with the US, earlier planned for August 25, would emerge 'closer to the date', a senior government official said on Thursday, reaffirming that India and US remain 'engaged' at various levels including at the diplomatic and commercial levels. The official added that the levy of the additional 25 per cent penalty by the US — over and above the 25 per cent reciprocal tariff that is already in effect — would depend on 'how geopolitical developments unfold' over the next few days. The official said they are going to keep a close watch on the developments around Russian President Vladimir Putin and US President Donald Trump scheduled meeting in Alaska to close a deal to end the Ukraine war. 'If you look at the US tariffs. One set of tariffs have come into force from August 7. Another set of tariffs have been announced and will come into effect on August 27. That has not come into force yet. The additional 25 per cent is not related to trade, it is because of geopolitical issues. Since a lot of geopolitical developments are happening, it [additional tariff] would depend on how geopolitics unfolds in the next 21 days,' the official said. 'Last time when the negotiating team [for the US trade deal] had gone from India, they had decided that in the last week of August there will be another round of talks. We are fully engaged with the US on the trade negotiations..,' the government official said. For the 'negotiating rounds', the official said that many things are happening in the US. 'Russia, EU, Ukraine are coming. I think closer to the date, which is the end of August, you would be able to know how that round will be progressing,' the official said. The Indian Express had reported on August 8 that India-US negotiations for a trade agreement have hit a pause after US President Donald Trump dramatically escalated trade tensions between the two countries by doubling tariffs on India to 50 per cent. The arrival of the US trade team is uncertain, as no formal communication has been received by the US side, this paper reported, quoting government officials. The pause in talks, after months of discussion, had come after New Delhi decided to dig in its heels over market access in the agricultural sector. Meanwhile, US Treasury Secretary Scott Bessent has warned that the secondary tariffs on India could go up if 'things don't go well' during talks between Trump and Putin in Alaska on Friday. 'I think everyone has been frustrated with President Putin. We expected that he would come to the table in a more fulsome way. It looks like he may be ready to negotiate. And we put secondary tariffs on the Indians for buying Russian oil. I could see, if things don't go well, then sanctions or secondary tariffs could go up,' Bessent said in an interview with Bloomberg on Wednesday. When asked about China, the main buyer of Russian crude, Bessent said he is 'not going to get ahead of the President, but the President is the best at creating leverage for himself, and he will make it clear to President Putin that all options are on the table.' On whether sanctions can go up or loosened, Bessent said, 'Sanctions can go up, they can be loosened. They can have a definitive life. They can go on indefinitely. You know, there's this Russian shadow fleet of ships around the world that I think we could crack down on.' He added that even as Trump is meeting with Putin, the Europeans 'need to join us' and need to be willing to 'put on these secondary sanctions.' Bessent recalled that at the G7 meeting in Canada this year, when he asked the leaders at the table whether they were willing to put a 200 per cent secondary tariff on China. 'And you know what, everybody wanted to see what kind of shoes they were wearing.' He added that Trump is committed to ending the bloodshed in the Ukraine war. 'It's put up or shut up time. The President is creating his own leverage. We need the Europeans to come in and help create more leverage,' Bessent said. Responding to the tariffs, the Ministry of External Affairs has said that the targeting of India is unjustified and unreasonable. 'Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,' it said.
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First Post
10 minutes ago
- First Post
Federer and Infantino to the rescue? How Switzerland is counting on sports diplomacy after getting hit by US tariffs
With the United States slapping a massive 39 per cent import duty on Switzerland – famous for the Alps, chocolate, luxury watches and 'cheese' – the nation is turning to tennis legend Roger Federer and FIFA president Gianni Infantino for help. Switzerland will be hoping Roger Federer and Gianni Infantino are able to convince US President Donald Trump against placing a whopping 39 per cent import duty on their goods. Reuters US President Donald Trump has once again sent shockwaves around the globe. His latest tariff strike has world leaders scrambling, and Switzerland – famous for the Alps, chocolate, luxury watches and 'cheese' – is in the firing line. The US has slapped a massive 39 per cent import duty on Swiss goods. And the usually calm, neutral nation is now urgently looking for a way out. Their plan? Not the usual round of political talks and negotiations, but calling in two of their biggest sporting heavyweights to work their magic. STORY CONTINUES BELOW THIS AD Fifa boss Gianni Infantino and tennis legend Roger Federer have been asked to open informal backchannels with President Trump. Why the Swiss are turning to Federer and Infantino for help And why these two, one might wonder? Two reasons – Infantino has Trump's friendship and Federer has global celebrity charm. Together, they will get him to ease the pressure. But with Trump's track record, will he listen? Or will Switzerland just end up with an even bigger bill? 'If personalities who know him have a conversation with him, we're not against it. That's not a strategy we can officially pursue,' said Swiss President Karin Keller-Sutter. In other words, Switzerland wants Federer and Infantino to do what they fear they can't. And honestly, it's not their worst idea. When Federer speaks, the world listens. And given Trump's fondness for sports, he might at least give them a listen. Then there's Gianni Infantino. His position as Fifa president is impressive. But it's his personal friendship with Trump that's priceless here. A friendship that's only grown warmer since the Fifa Club World Cup. Infantino even handed Trump the inaugural Club World Cup trophy. Maybe now he can cash in that favour: 'I gave you the trophy — now how about you drop the tariffs?' If he pulls it off, Infantino might just earn himself a 'noble mediator' title. But Switzerland's up against a very unusual political figure. They're not the first to try a sporting shortcut with Trump. And history shows it's risky. How a similar move backfired for South Africa Earlier this year, South Africa's president Cyril Ramaphosa brought golf stars Ernie Els and Retief Goosen into the Oval Office, hoping to smooth relations. This was after Trump accused South Africa of 'white genocide.' The meeting was all smiles, but days later, Trump hit them with 30% tariffs. Two elite golfers — playing Trump's own sport — couldn't move him. STORY CONTINUES BELOW THIS AD So the odds are stacked here for infantino and federer… Infantino's friendship gives him an edge. And Federer? He brings a mix of charm, global respect, and household-name status. And since retiring, Federer has even taken up golf — another subtle link that could help break the ice with Trump. Charm, diplomacy, and sportsmanship — Federer's got it all. But will it be enough to sway the most unpredictable president in modern history? Switzerland's gamble is clear – bypass the podiums and policy papers, and employ the most unusual strategy. It's a high-stakes match — with tariffs, trade, and diplomacy all on the line. Federer and Infantino can save Switzerland millions. If so – they'll prove that sometimes, the right serve or the perfect pass can be just as powerful as any political handshake. That is of course should Federer and Infantino choose to accept this mission. Watch the full episode here: STORY CONTINUES BELOW THIS AD
