Reliance Industries, led by Mukesh Ambani, has reportedly bought rare fuel oil from state-run Hindustan Petroleum.
US Treasury Secretary Scott Bessent reportedly hinted at possible secondary tariffs on India, depending on the outcome of Trump’s meeting with Putin.
Billionaire Mukesh Ambani-led Reliance Industries has purchased rare fuel oil from government-run Hindustan Petroleum Corp. The move seems to suggest that Reliance is diversifying its sources of fuel oil, Reuters reported. The purchases made in the recent few weeks by Reliance have come around a time when India is heavily under pressure from the President Donald Trump-led US administration for its energy-related ties with Russia.
“It’s a recent phenomenon [for Reliance] to diversify their slate with cheaper residue barrels,” Reuters reported, citing a source.
In the past few years, the Mukesh Ambani-led company has ramped up efforts to buy cheap supplies of Russian crude and fuel oil. These supplies are reportedly available at a discount after companies from the western countries pulled back from making purchases from Russia due to sanctions imposed since the Ukraine war in 2022.
In fact, President Trump has warned India that if it continues to buy oil from Russia, he will further impose more tariffs on the country. Earlier this month, Trump imposed a 25% tariff on India in addition to 25% tariffs for buying oil and weapons from Russia.
Recently, US Treasury Secretary Scott Bessent reportedly signaled that secondary tariffs could be imposed on India, depending on the outcome of President Donald Trump’s meeting with Russian counterpart Vladimir Putin. The meeting is set to take place in Alaska on August 15.
“We’ve put secondary tariffs on Indians for buying Russian oil. And I could see, if things didn’t go well, then sanctions or secondary tariffs could go up,” the US Treasury Secretary said in an interview with Bloomberg TV.
Besides this, the European Union on July 18 adopted the 18th sanctions package against Russia, targeting hundreds of ‘shadow fleet’ tankers, energy trade, and traders and banks enabling it. The union reduced the Russian oil price cap from $60 to $47.6 per barrel. The price cap is effective from September 3.
Apart from Reliance, India’s second-largest private refinery operator, Russian-backed Nayara Energy is also facing the heat of Trump’s threat. Last month, Microsoft had blocked the operator’s access to data, tools, and products, despite having valid paid licences. The services, however, were later restored following a legal action by Nayara.
