India is the second largest buyer of Russian oil. (Symbolic Image)
Negotiations on trade agreement are going on between India and America. Meanwhile, a new bill has been introduced in America, which has increased India’s concern. In this bill, countries buying oil from Russia Talk of imposing 100% tariff It has been said. Big countries like India and China are included in this list. However, one thing is most discussed in this proposal. The European Union (EU) has been given permission to buy LNG gas from Russia. Not only this, America will also continue to buy uranium for nuclear reactors and some materials for medical use from Russia. For this reason, this proposal is being seen as ‘double standards’ in India.
What is the whole matter?
This bill was presented in the US Senate on Thursday. It has received the support of more than 60 MPs. This bill has been introduced by Democrat MP Richard Blumenthal and Republican MP Lindsey Graham. According to the bill, 100% tariff can be imposed on countries like India, China, Slovakia, Hungary and Azerbaijan because they are buying crude oil from Russia. However, a proposal has been made to allow European countries to buy gas from Russia. Apart from this, America will also get exemption from Russia in activities related to uranium and some other nuclear and space cooperation.
Why did India buy Russian oil?
After the Russia-Ukraine war, Western countries imposed many sanctions on Russia. After this, Russia started selling crude oil at concessional prices to countries like India and China. India says that by buying cheap Russian oil, it ensured the country’s energy security and helped in keeping the prices of petrol and diesel under control.
How much Russian oil is India buying?
According to the Center for Research on Energy and Clean Air (CREA), India bought Russian crude oil worth 4.5 billion euros (about more than Rs 45,000 crore) in the month of June. In this way, India has become the second largest buyer of Russian oil after China. India’s oil imports from Russia increased by 34% in June compared to the previous month. Experts say that after the Iran-Israel tension, India increased its purchase of oil from Russia.
What is India’s concern?
The Government of India believes that if such a law is implemented, it can affect not only India but the energy supply of the entire world. Especially amid the increasing tension around the Strait of Hormuz, if the pressure on Russian oil supply also increases, then oil prices may increase further in the global market.
The law has not been made yet
At present this is just a proposed bill. It will first get approval from the US Senate and House of Representatives. Only after this it will go to President Donald Trump for signature. Only if the President approves it will it become a law. According to the report, last year also President Donald Trump had announced to impose 25% tariff on India on the issue of buying oil from Russia. However, this decision was later withdrawn after the trade agreement negotiations between India and America progressed.
Trade agreement may be affected
This new proposal has come at a time when efforts are going on to finalize the free trade agreement between India and America. Experts believe that if this bill becomes law, the trade relations between the two countries may be affected. However, the final decision is yet to come. This is why India is keeping an eye on this bill.
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