For India, Buying Russian Oil Just Got More Complicated

The U.S. Supreme Court’s decision against President Trump’s use of an emergency law has intensified a dilemma for Prime Minister Narendra Modi. India had just secured relief from a 50 percent tariff in a trade deal that included a pledge to stop buying Russian crude — a concession that has exposed Mr.

Modi to criticism at home for appearing to bend policy to placate the United States. The ruling complicates matters because the tariff threat rested on the very law the court found was being used improperly. The Trump administration portrayed the Russian oil provision as a quid pro quo, noting the tariff was dropped “in recognition of India’s commitment to stop purchasing Russian Federation oil.” Still, Indian buyers had already been cutting seaborne crude purchases from Russia while increasing imports of American energy, and a U.S.

Treasury move in October to penalize firms doing business with Rosneft and Lukoil further discouraged trade.

India

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