NCP (SP) asks Centre to spell out economic fallout of US tariff threat over Russian oil

Mumbai: The NCP (SP) on Saturday demanded that the Centre make public a detailed assessment of India's economic exposure to a new US law authorising tariffs of up to 100 per cent on nations purchasing Russian energy.

Senior party leader and spokesperson Mahesh Tapase questioned the effectiveness of bilateral diplomatic ties and warned that forcing India to scale back Russian oil imports under Washington's pressure would burden citizens with higher fuel costs.

US President Donald Trump on Thursday signed the Sanctioning Russia and Iran Act, which seeks to impose steep levies on Moscow and its top energy buyers such as China and India.


The Act authorises tariffs of up to 100 per cent on goods from countries that meet specified conditions related to purchases of Russian-origin crude oil or natural gas.

"Once again, the Narendra Modi government's much-publicised 'personal chemistry' between the prime minister and President Trump stands exposed as hollow. Modi has failed to secure a durable, binding trade understanding with Washington, once again letting India drift into fresh uncertainty, this time with a sword of up to 100 per cent duties hanging over every Indian exporter," Tapase said in a statement.

He pointed out that Russian crude continues to make up a large share of India's oil basket.

"If New Delhi is now forced to walk back these purchases under American pressure, ordinary citizens will be compelled to pay higher fuel prices. The Modi government certainly cannot keep the country in the dark," he said.

The NCP (SP) said that the prime minister and the Union Finance and External Affairs ministries must clarify the potential impact of the US measure.

He asked what concrete, time-bound steps the government had taken to protect Indian exporters and jobs dependent on the US market from the possibility of tariffs of up to 100 per cent.

Tapase also sought details of the government's contingency plan to secure affordable alternative sources of crude oil if India were to scale back purchases from Russia, and demanded that it disclose sector-wise impact of the tariff threat so that the public does not have to depend on foreign media reports to understand India's economic exposure.

The Sanctioning Russia and Iran Act has raised concerns in India because the country is among the major purchasers of Russian crude. The government has said it is monitoring developments and remains committed to ensuring energy security and protecting India's trade and economic interests.