The United States has brought India's imports of Russian oil up for discussion in trade talks, Economic Times reported quoting individuals with knowledge of the situation, even as Indian refiners boost those imports to meet rising local demand.
A US team headed by Assistant Trade Representative Brendan Lynch raised the issue with Indian negotiators in a Tuesday meeting, the report added quoting sources who asked not to be named since the talks are not open. It is an unusual request since a nation's business with a third country is seldom part of bilateral trade negotiations.
India's Commerce and Industry Ministry did not answer calls or emails seeking comment, nor did the office of the US Trade Representative.
The US delegation came to New Delhi earlier this week for one day of talks, seeking to de-escalate tensions after President Donald Trump slapped a 50% duty on India—a top Asia rate.
Certain indications of a possible thaw appeared after President Trump phoned Indian Prime Minister Narendra Modi on his birthday this week, fueling guarded hope in New Delhi that there could be a trade deal.
In Tuesday's talks, India pushed for the removal of the extra 25% tax on its Russian energy imports, the sources added, hinting that a deal would not be easy. The Indian government has labeled the extra tariffs as "unfair, unjustified and unreasonable," justifying its Russian oil imports as vital to energy security.
Indian refiners have no plans to cut Russian crude imports as fuel demand in the country increases after the monsoon season, and the government has not directed them to scale down, Bloomberg reported Friday.
Following the Tuesday meeting, the two nations called the negotiations "positive" and said they discussed various aspects of the trade agreement. They also pledged to "intensify" efforts to clinch a deal.
Earlier, both the US and India had been looking to seal a bilateral trade agreement this autumn. But the talks collapsed after the two sides took harder lines and Trump pushed New Delhi on its relations with Moscow. Washington also wants increased access to India's dairy and farm sectors, which New Delhi has been reluctant to open up.
Read also| Hit By Sanctions, Banned Pak Terror Group Jaish-e-Mohammed Changes Name To Al-Murabitun
