‘Don’t Punish India’: JPMorgan CEO Raises Concerns Over US Tariffs on Russian Oil

Washington: US President Donald Trump has approved the law on new sanctions related to Russia. Under this, America can impose up to 100 per cent tariffs on big countries buying oil and gas from Russia. This step is expected to impact India and China also. Meanwhile, JP Morgan CEO Jamie Dimon has advised America to be cautious regarding India.

Can pressure on India also increase on buying oil from Russia?

Jamie Dimon said that the US should first understand how Indian refineries use Russian crude. He said that before taking such decisions, it is important to understand the impact on the oil market of India and the world. According to Dimon, amid efforts to put pressure on Russia, America should see whether it is causing harm to India and the global oil market.

Is imposing a tariff on Russian oil not the right way?

Dimon also questioned the manner in which tariffs on Russian oil were imposed. He said he does not think any kind of tariff should be imposed on oil.

According to him, along with the steps being taken to put pressure on Russia, America will also have to see that it does not harm the oil market of India and the world.

What will happen if India does not buy Russian oil?

Jamie Dimon said that if India does not buy oil from Russia then it will have to buy crude oil from some other source. But every type of crude oil is not the same.

He explained that different refineries are designed to process specific types of crude. In such a situation, it is not necessary to replace the oil coming from Russia with crude from any other country which would prove suitable for every Indian refinery.

Why is it not easy for India to replace Russian oil?

India is among the world's largest crude oil importers and Russian oil is an important part of its supply. According to Dimon, the impact of any interruption in Russian supply will not be limited to India only, but may also put pressure on the supply and prices of the international oil market.

He also said that the United States should take steps to help Ukraine, but it is important to take into account Russia's broader impact when taking action on its energy business.

How much did India's Russian oil purchases decrease in August?

India imported about 2.1 million barrels per day of Russian crude in August, according to Reuters tanker data. This was about 16.5 percent less than in July. The share of Russian oil in India's total crude imports in August was about 47 percent.

During the same period, India imported a total of 44.4 lakh barrels of oil per day, which was about 8.8 percent less than in July. In such a situation, the issue of US tariffs on Russian oil has also become important for India-US economic relations.

Dimon appealed to continue negotiations between the two countries and complete a trade agreement. He said that stability and trust in rules are very important for business.