India US Trade Deal: In a massive setback to Russian exports, the merchandise imports of India from Kremlin fell a staggering 40.48 percent to $2.86 billion in the month of January 226 compared to last year’s $4.81 billion. The latest data released revealed that the reduction happened primarily on the account of refiners from Russia cutting down on crude purchases from Russia.
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India US Trade Deal-Would Russian Imports’ Fall Help Volodymyr Zelensky And Donald Trump?
For months, Ukraine President Volodymyr Zelensky and the United States President Donald Trump have been telling the world that countries such as India are funding Kremlin’s war against Ukraine.
The Trump administration had put a condition on India before signing the US India trade deal that it must immediately stop buying crude oil from Russia. The deal is yet to be signed and only its framework has been finalized till now. This dropdown in the merchandise imports of India from Kremlin is likely to thrill both Zelensky and Trump.
It is widely expected that the fall in the merchandise imports of India from Kremlin are likely to go down more in the coming months. This is primarily because Indian refiners are likely to purchase cheaper crude oil from Venezuela and not from Kremlin anymore.
Elimination Of Punitive Tariffs
On February 6, the Trump administration withdrew the punitive tariffs of 25 percent imposed by it earlier. It was remarked by the US administration that India has committed to indirectly as well as directly stop importing crude oil from Russia. It was also communicated that India has agreed in principle to buy energy products from the United States. The US administration also remarked that India would soon be resuming the purchase of energy from South American nation Venezuela.
In 2011-12, crude supplies of Russia to India were zero and saw a sudden increase when it touched over $31 billion in 2022-23.
