**Russia Shifts Oil Exports to China Amid US Tariff Threat**
In a significant move, Russian oil companies are redirecting their shipments of Urals crude from India to China. This change comes after US President Donald Trump imposed new tariffs on Indian imports over energy cooperation with Moscow.
According to Bloomberg, traders linked to the Kremlin have begun offering barrels of Urals oil at a discount to Chinese refineries. These deliveries are scheduled for October and will come from Russia’s western ports. The prices have been cut by $1 per barrel, making it an attractive option for China.
This shift is a result of Trump’s Aug. 6 executive order, which imposed a 25% tariff on Indian imports. The White House stated that the measure was in response to India’s continued purchase of Russian oil and weapons despite the ongoing war in Ukraine. An earlier 25% tariff, effective from Aug. 1, had already put pressure on Indian buyers.
**India’s Shift Away from Russian Oil**
Until now, India had become one of the largest buyers of Russian seaborne crude. However, following Russia’s full-scale invasion of Ukraine in 2022, Indian imports of Russian oil surged more than 20-fold, reaching over 2 million barrels per day. At the start of 2022, Russian oil made up just 0.2% of India’s energy mix.
However, after Trump’s latest tariff threat, Indian state-owned refiners began halting Russian oil purchases. The Indian government has instructed oil firms to prepare alternative supply plans. This move indicates a shift in India’s strategy towards Russia, which was previously its largest supplier of seaborne crude.
**China Emerges as Crucial Lifeline for Russia**
Despite China’s claims of neutrality in the war, Beijing has emerged as a crucial lifeline for Russia, providing dual-use technology while continuing to buy oil. Washington has warned that further purchases could trigger punitive measures, including tariffs of up to 100% on Chinese exports to the US.
**Tariff War Continues**
The new tariffs are part of a broader effort to squeeze Russia’s oil revenues, which account for roughly one-third of its federal budget and are vital to funding its war. Trump has grown increasingly impatient with what he calls Moscow’s delays in peace talks.
As the tariff war continues, it remains to be seen how India will manage its energy needs and whether China will continue to be a reliable supplier for Russia. The situation highlights the complexities of global trade and politics and the impact on countries involved in these disputes.
**Expert Analysis**
According to Alexandra Filippenko, an American studies expert, US influence is still significant in India despite its ties with Russia. “The American market is, of course, very important for India — far more important than Russia, and far more important than cheap Russian oil,” she said.
As the situation unfolds, it’s clear that the impact of these tariffs will be felt across the globe. China’s emergence as a crucial lifeline for Russia and India’s shift away from Russian oil demonstrate the complex dynamics at play in global trade and politics.
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