Now Reading: US Senate passes bill for up to 100% tariff on Russian oil buyers
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US Senate passes bill for up to 100% tariff on Russian oil buyers
US Senate passes bill for up to 100% tariff on Russian oil buyers
The US Senate passed a bill on Friday by 86-11 that could impose tariffs of up to 100% on countries among the top five importers of Russian oil and gas, including India…
The Story in Brief
The US Senate passed a bill on Friday by 86-11 that could impose tariffs of up to 100% on countries among the top five importers of Russian oil and gas, including India and China. Two Indian analysts offer sharply different assessments. Kotak Securities' Anindya Banerjee told Economic Times the impact would be minimal, the Russian crude discount is now just $2-3 a barrel, worth $2-3 billion annually against India's $150 billion oil import bill. He said shifting to Middle Eastern supplies would not severely disrupt inflation or the fiscal deficit.
CareEdge Ratings' Sachin Gupta told Business Today that a 100% tariff could make India's $80 billion merchandise exports to the US unviable and, if both India and China stop buying Russian crude, global prices could spike to $110-120 a barrel. That would more than double India's current account deficit and stoke domestic inflation. The bill, renamed the Lindsey O. Graham Sanctioning Russia and Iran Act, extends Iran sanctions until 2031.
The Indian Opinion
Two contrasting expert views frame the Russia tariff threat: one says India is largely insulated, the other warns of crude above $120. The truth likely lies between. The US bill gives wide discretion, how it is applied to sectors like pharma or electronics will decide the real bite. India's diversified sourcing and non-dollar payment channels do offer buffers, but a prolonged global crude spike above $100 remains the bigger macroeconomic risk. Watch for the tariff exemptions and the actual crude price trajectory in the coming months.
Sources (2): economictimes.indiatimes.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
