After U.S. President Donald Trump signed a law that allows for tariffs of up to 100% on major countries purchasing oil and gas from Russia, JP Morgan CEO Jamie Dimon called on the U.S. administration to exercise caution regarding India. This law potentially affects both India and China.
During a JP Morgan investor conference in Mumbai, speaking to CNBC-TV18, Dimon emphasized the need to understand exactly how Indian refineries use Russian crude oil. He noted that before making such decisions, it is crucial to assess the impact of these measures on the global oil market and on the Indian market itself.
Jamie Dimon also questioned the method of imposing tariffs on Russian oil. In his view, introducing any duties on oil is not a correct step. He believes that under pressure on Russia, the U.S. must consider whether this harms the oil market of India and the world.
Dimon added that if India stops purchasing Russian oil, it will have to seek alternative sources. However, he warned that not all crude oil is the same; different refineries are designed to process specific types of raw materials. Therefore, it is not guaranteed that raw material from another country will suit every Indian refinery.
India is one of the world's largest crude oil importers, and a significant portion of its supplies comes from Russian oil. According to Dimon, any disruptions in Russian supplies will not be limited to India but could affect the international oil market, putting upward pressure on prices.
He advised the U.S. to continue taking steps to support Ukraine while also considering the broader consequences of actions taken against Russia's energy business. Dimon also highlighted the need for dialogue between the U.S. and India on this issue.
India defends its purchase of Russian oil, linking it to ensuring its own energy security. The Indian ambassador to the U.S., Vineet Mohan Kwatra, stated that India's energy policy is based on the principle of 'people first.' He clarified that decisions are made considering the availability of oil, its price, market conditions, and commercial viability.
Since India imports over 85% of its crude oil, changes in global price and supply markets can directly affect the Indian economy.
According to Reuters tanker data, in August, India imported about 21 million barrels per day of Russian crude oil, which was 16.5% less than in July. In August, the share of Russian oil in India's total crude oil imports was about 47%. India's total oil import volume in August reached approximately 44.4 million barrels per day, an 8.8% decrease compared to July. Thus, the issue of potential American tariffs on Russian oil has become an important aspect of economic relations between India and the U.S.
Dimon called on both countries to resume negotiations to finalize pending trade agreements, emphasizing that stability and trust in rules are critical for doing business.