US President Donald Trump has signed a broad Russia sanctions law that allows his administration to impose tariffs of as much as 100 per cent on major buyers of Russian oil and gas, including India and China. With India’s purchases of Russian crude now facing increased scrutiny, JPMorgan Chase CEO Jamie Dimon has called on Washington to assess the impact on Indian refineries and international oil markets before introducing such tariffs.
Speaking to CNBC-TV18 on the sidelines of the JPMorgan India Investor Conference in Mumbai, Dimon said the US should first examine how Indian refineries use Russian crude before deciding on additional measures.
His remarks come as Washington looks to intensify pressure on countries continuing to purchase Russian oil. India, one of the world’s largest crude importers, has become a significant buyer of Russian oil.
“I think hopefully America will sit down and understand all those issues and, you know, not end up punishing India and the world oil markets while doing what we need to do to combat Russia,” Dimon said.
He also expressed doubts about whether imposing tariffs on Russian oil would be an effective way to pressure Moscow.
“I’m not sure I think we should be putting any kind of tariffs on the oil,” he said.
WHY INDIA CANNOT EASILY REPLACE RUSSIAN CRUDE
Dimon’s concerns are linked to the different grades of crude processed by refineries. Although India has access to oil from multiple suppliers, different crude varieties are not always interchangeable because individual refineries are configured to process specific grades. As a result, replacing Russian crude could involve more than simply switching to another source.
“If they don't buy it here, they have to buy it elsewhere,” Dimon said, noting that alternative crude may not necessarily be compatible with certain Indian refineries.
“I think in this case would be quite respectful of the fact that, you know, some of that oil is refined and imported. If they don't buy it here, they have to buy it elsewhere. It might not be the right kind of oil for those refineries,” he said.
Restrictions on Russian crude could therefore have repercussions beyond Moscow, particularly if they interfere with established supply chains or contribute to higher prices in the global oil market.
TRUMP'S RUSSIA SANCTIONS LAW
Dimon’s remarks came shortly after Trump signed the Russia sanctions legislation into law. The measure gives the administration authority to impose tariffs of up to 100 per cent on countries that continue purchasing Russian oil and other energy products. It is intended to increase economic pressure on Russia over its war in Ukraine. However, India and China are among the biggest buyers of Russian energy, meaning the legislation could also affect their economic ties with Moscow.
Dimon said the US should continue assisting Ukraine while considering the wider effects of measures aimed at Russian energy exports.
“I think we should be doing more to help Ukraine,” he said.
He also called for Washington to engage with New Delhi on how any restrictions could be implemented, rather than taking steps that might disrupt existing oil supply chains.
INDIA'S 'PEOPLE FIRST' ENERGY POLICY
India has defended its continued purchases of Russian crude, pointing to the need to ensure affordable and dependable energy supplies for its population.
Indian Ambassador to the US Vinay Mohan Kwatra said last week that India’s energy policy follows a “people first” approach, shortly after the US Congress approved legislation allowing steep tariffs on countries purchasing Russian energy.
“The energy security of India's people comes first,” Kwatra said in a post on X.
“Our choices are guided by availability, affordability, market conditions and commercial viability,” he said. Kwatra also pointed to India’s reliance on imported energy. The country sources more than 85 per cent of its crude oil and roughly half of its natural gas from overseas, making global prices and supply disruptions significant factors for the Indian economy.
He said India had previously acted to shield consumers from sharp price increases when geopolitical conflicts disrupted international energy supplies.
“That also helped steady global energy markets and prevent a deeper crisis,” he said.
“Our sourcing reflects a fundamental national responsibility: looking outside our borders to secure adequate, affordable and uninterrupted energy for our people,” the Indian envoy said.
The legislation, called the Lindsey O Graham Sanctioning Russia and Iran Act, gives Trump the power to impose additional tariffs on countries that continue trading with Moscow.
INDIA'S RUSSIAN OIL IMPORTS FALL
India’s imports of Russian crude have already dropped compared with the previous month, according to tanker data cited by Reuters.
The country received around 2.1 million barrels per day (bpd) of Russian oil in August, representing a 16.5 per cent decline from July. Russian crude made up approximately 47 per cent of India’s total oil imports during the month.
India imported 4.44 million bpd of crude overall in August, almost 8.8 per cent lower than July and 9.8 per cent below the figure recorded a year earlier.
The tanker data includes some cargoes that reached India in August but were unloaded in September, along with shipments that arrived in July and were discharged in August.
Dimon also discussed the wider economic relationship between India and the US, saying disagreements over Russia and the Ukraine war had complicated bilateral ties. He encouraged both governments to continue efforts to conclude their stalled trade agreement.
“If I was urging both governments, sit down and try to finish it,” he said.
He also underlined the importance of stability for businesses operating internationally, particularly in areas involving regulations, laws and capital.
“It’s important to have stability,” he said.
The issue of Russian oil purchases is now adding another layer to India-US economic relations, with Washington seeking greater pressure on Moscow while New Delhi continues to emphasise the need for affordable and dependable energy supplies.
