China ramping up Russian oil purchase amid Trump’s tariff threats? Reports claim drop in Indian demand

Following significant tariffs imposed on India by US President Donald Trump over the purchase of oil from Russia, the demand from the South Asian country for Moscow’s crude has dropped. Taking advantage of the situation, Chinese refineries have placed new orders for Russian crude from ports that earlier supplied to New Delhi, according to reports. After Western countries halted Russian imports following Moscow’s 2022 invasion of Ukraine, China and India emerged as the top buyers of oil from Russia.

CNN reported, citing analysts, that at least 15 cargoes of Russian oil have been secured by Chinese refineries, which will be delivered in October and November this year.

Did tariffs result in drop in demand for Russian oil?

Earlier in July, US President Donald Trump threatened to impose secondary tariffs on countries purchasing Russian oil in a bid to pressure Moscow to end the war in Ukraine, which is in its fourth year. Earlier this month, Trump imposed additional 25 per cent tariffs on India, on top of the initial 25 per cent duties, citing Russian oil and gas imposed. The move has led the country to cut down its purchases drastically, reported CNN.

Muyu Xu, senior crude oil analyst at Kpler, which tracks commodities and shipping data, said that China’s state-owned and large private refiners had purchased about 13 cargoes of Russian crude that will be delivered in October. In addition, at least two such purchases have been made for the month of November.

Reportedly, the 15 cargoes of oil, which usually range from 700,000 to 1 million barrels, are set to be supplied from Russia’s Arctic and Black Sea ports, which typically supply to India, Xu said.

In a similar report, Reuters claimed, “Indian state refiners paused Russian oil purchases last month.” The report, citing a trade source, added that the cargoes were most likely at the beginning of the month.

Trump tariff threats

Meanwhile, India earlier said that it has not halted its oil purchase from Russia following Trump’s tariff threats, which it called unjust and unreasonable, and continues to buy for economic considerations.

Reuters report added that Chinese refiners are also wary about the possibility of US sanctions. Trump on Friday said that he did not immediately need to consider retaliatory tariffs on countries for buying Russian oil, adding that he might have to think about it “in two or three weeks.”