US Senator Lindsey Graham has warned that US President Donald Trump will impose steep tariffs on countries continuing to buy oil from Russia, specifically naming India, China, and Brazil.
“Trump is going to impose tariffs on people that buy Russian oil – China, India, and Brazil,” Graham said during a recent interview to Fox News, adding that these three nations account for around 80 per cent of Russia’s crude exports, which is helping Moscow to fund the war in Ukraine.
“If you continue buying cheap Russian oil, we will impose tariffs and we will crush your economy,” he added.
Trump may enforce 100% tariffs
President Donald Trump has earlier said that he would impose secondary sanctions on countries importing oil from Russia, which, if passed, could severely hurt India’s energy supplies.
“President Trump’s going to put a 100 per cent tariff on all those countries, punishing them for helping Putin,” Graham said.
Addressing Russian President Vladimir Putin directly, the Senator said, “You have played President Trump at your own peril. You made a major league mistake, and your economy is going to continue to be crushed. We’re flowing weapons to Ukraine, so Ukraine will have the weapons to fight Putin back.”
Graham pointed out that Putin is trying to recreate the former Soviet Union by invading countries that do not belong to him. “Putin wants to take countries that are not his. In the mid-90s, Ukraine gave up 1,700 nuclear weapons with a promise that their sovereignty would be respected by Russia. Putin broke that promise,” he said, adding that Putin is “not going to stop until somebody makes him stop”.
He also warned India and other countries of crushing their economies if they continue to import oil from Russia.
“Here’s what I would tell China, India and Brazil: If you keep buying cheap Russian oil to allow this war to continue, we’re going to tear the hell out of you and we’re going to crush your economy, because what you’re doing is blood money. You’re buying cheap Russian oil at the expense of the world, and President Trump is tired of this game,” he said.
He further highlighted that while Putin may be able to withstand sanctions and show disregard for Russian soldiers, other countries dependent on trade with the United States will feel the cost.
“China, India, and Brazil they’re about to face a choice between the American economy or helping Putin. And I think they’re going to pick the American economy,” he said.
India reaffirms energy security stance
Following Graham’s remarks and continued concern about 100% secondary sanctions for purchase of Russian oil, India on Tuesday reaffirmed its stance on maintaining the country’s energy security.
“We have been very clear that insofar as energy security is concerned, it is the highest priority of the government of India to provide energy security for the people of India, and we will do what we need to do with regard to that,” Foreign Secretary Vikram Misri said during a briefing.
Misri reiterated the need to avoid “double standards” and have a clear perception of the global market situation.
“We do understand that there is an important and serious security issue that is confronting Europe, but the rest of the world is also there. It is also dealing with issues that are existential for the rest of the world, and I think it’s important to keep balance and perspective when talking about these issues,” Misri told reporters.
Russia has become the top supplier of crude oil to Indian refiners post its invasion of Ukraine. Russia presently accounts for 35% of India’s total oil supplies, up from just 2% before the start of the Russia-Ukraine conflict in early 2022.
India’s oil minister Hardeep Singh Puri has earlier said that the country is not worried of the secondary sanctions from the US over Russian crude oil imports and will continue sourcing oil from wherever necessary to ensure energy security.
The country feels “no pressure” and has enough supply options to ensure uninterrupted fuel availability even in turbulent times, Puri had said.
“We will buy from wherever we have to because the Prime Minister’s commitment is to the Indian consumer,” the oil minister had said.
Sumit Ritolia, Lead Research Analyst, Refining & Modeling at Kpler had earlier pointed out that if Russian crude is priced out due to tariffs or tighter compliance risks, the country can anticipate a gradual but steady reallocation toward WTI, Brazilian pre-salt barrels, and a resurgence in Middle Eastern term flows.
However, it may increase the country’s oil import bill as India will lose its access to discounted Russian barrels.