India accuses EU and US of ‘indulging' in trade with Russia

Yahoo

2 days ago

India has accused the EU and US of 'indulging' in trade with Russia after Donald Trump criticised New Delhi for propping up Vladimir Putin's war machine by buying its oil.
The country's foreign ministry said it was forced to buy 'predictable and affordable' Russian oil after other supplies were diverted to Europe after the invasion of Ukraine in 2022.
It comes after the US president threatened to 'substantially raise' tariffs on India, adding the country was buying discounted Russian oil and 'selling it on the open market for big profits.'
India called the attack 'unjustified and unreasonable' in a statement, arguing that its dealings with Russia were 'a necessity' for the country's economic prospects.
It added: 'It is revealing that the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion.'
While Brussels has vowed to wean itself off Russian oil by 2027, it still imported €22.3bn (£19.3bn) worth of fossil fuels in 2024, with Moscow its third largest trading partner.
India said the EU's trade with Russia, at €67.5bn (£58.6bn) of goods last year, 'is significantly more' than India's total trade with Russia, which stood at £51.7bn in the financial year ending in April.
India's imports are dominated by oil, with total trade with Russia now six times higher than before the pandemic. By contrast, Brussels has reduced its trade with Moscow from €257bn in 2021.
'Europe-Russia trade includes not just energy, but also fertilisers, mining products, chemicals, iron and steel and machinery and transport equipment,' the Indian government said.
India's government also accused the US of continuing 'to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilisers as well as chemicals'.
Mr Trump has repeatedly criticised Mr Modi's administration in the past fortnight, both for the imbalance in trade between the nations and for purchasing Russian energy and weaponry.
Last year, the US imported $87.3bn-worth of goods from India, according to official US data, while exporting $41.5bn-worth in the other direction. That leaves a deficit for the US of $45.8bn, an imbalance which Mr Trump regards as a sign that Americans are getting a raw deal.
Services trade is more closely balanced, with flows of just under $42bn in each direction.
Overnight, the US president ramped up his threat to increase taxes on trade with India.
'India is not only buying massive amounts of Russian oil, they are then, for much of the oil purchased, selling it on the open market for big profits,' he posted on his Truth Social site.
'They don't care how many people in Ukraine are being killed by the Russian war machine. Because of this, I will be substantially raising the tariff paid by India to the USA.'
On Friday, the White House announced a raft of new tariffs on goods imports, including a 25pc tax on products arriving from India. However, the president said he will also impose 'a penalty' on top of that rate because of India's purchases from Russia.
'While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country,' Mr Trump posted online last week.
The spat risks undoing years of work in Washington to forge closer links with New Delhi, potentially undermining efforts to prevent a rising titan on the world stage from falling into China's orbit.
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