A senior government source said India's purchases of Russian crude have not emerged as a sticking point in ongoing trade negotiations with the US.
A bipartisan group of US senators has introduced legislation allowing tariffs of up to 100% on imports from the largest buyers of Russian energy.
Trade deal moving ahead: India and the US continue to advance negotiations on the proposed Bilateral Trade Agreement (BTA).
US Plans Tariffs on Russian Oil Buyers. Will It Affect India-US Trade Talks?
India-US trade talks remain on track despite a proposed US bill targeting buyers of Russian oil, with officials saying the issue is not a sticking point
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Ongoing trade discussions between India and the US are unlikely to be complicated by a proposed US bill that levies 100 percent duties on nations buying Russian crude, Moneycontrol reported citing a senior government source. The source added that the matter has not become an obstacle during bilateral talks, the report said.
These remarks come amid apprehensions that potential American measures targeting purchasers of Russian crude could impact countries like India, which remains a major importer of Russian oil.
"In our negotiations, this has not been a sticking point. A framework for a deal was announced in February and immediately after that additional 25 percent tariffs tied to Russian oil were removed," the source said. Subsequent rounds of discussions, including meetings last month, did not feature Russian oil purchases as a major point of contention, the source added.
US Tariff Legislation
A bipartisan group of American senators introduced an updated Russia sanctions bill on July 14. The proposed legislation would allow the US president to levy tariffs of up to 100 percent on imports from the five largest global buyers of Russian energy, including India and China.
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This bill seeks to mount pressure on Moscow by penalising nations whose energy acquisitions continue to fund the Russian military campaign. This updated draft is far milder than the earlier version, which proposed 500 percent tariffs on nations buying Russian energy.
Progress on Trade Deal
Commerce Secretary Rajesh Agrawal recently said the framework agreement for the proposed India-US trade deal, first agreed in February, is prepared for signing once both nations agree on the timing and structure. Agrawal added that negotiations on the broader Bilateral Trade Agreement (BTA) are progressing without hurdles.
"We have full assurance from the US as far as adherence to the deal is concerned," the source said. The source added that both nations remain committed to finalising the trade pact and are actively engaged in moving the negotiations forward.
Earlier, Commerce Minister Piyush Goyal said the India-US trade agreement is finalised but will not be implemented until New Delhi secures a distinct tariff advantage over rival manufacturing economies. These competitors include Vietnam, Thailand, the Philippines, China, Malaysia, Bangladesh and Sri Lanka.
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Goyal's comments followed meetings with US Trade Representative Ambassador Jamieson Greer in New Delhi from June 22 to 24. During these sessions, officials evaluated crucial components of the prospective deal, such as improved market access, digital commerce, supply chain robustness, lower non-tariff barriers and expanded cooperation in strategic sectors.