The US 25% levy on India is certainly not to ‘make it harder for the Russians’
If the US wants to pressure Russia by drying up its oil revenue, then why does it not just sanction Russian crude? It has done so with Iran and Venezuela, but has desisted on Russia. Instead, it has opted to apply ‘indirect pressure’ by raising additional tariffs on India – set to come into force from tomorrow – while the easiest way would have been to adopt the Iran-Venezuela model.
The fact is that Russia, as second-largest crude oil producer, accounts for nearly 10% global demand. It’s also the second-biggest exporter of crude besides refined products. So, in March 2022, when crude price rose to $137 a barrel, there were genuine fears that sanctions on Russian oil could trigger a major surge in prices, possibly cross the $200 mark.
