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Why India's Russian oil purchases could complicate trade deal with EU
Youtube· 2025-09-12 06:30
Core Viewpoint - Progress is being made on the trade deal between India and the EU, but the issue of Russian crude oil remains a significant sticking point [1][2]. Group 1: India's Position on Russian Crude Oil - India has been purchasing Russian crude oil within the global price cap set by Western nations, indicating compliance with international norms [3]. - As a major energy importer, India prioritizes competitive energy purchases to meet its fiscal balance and inflation needs, making it reluctant to reduce Russian crude oil imports [4]. - Despite international pressure, India is unlikely to significantly decrease its Russian crude oil purchases in the near future, although a slight reduction may occur [5]. Group 2: Implications for Trade Negotiations - The issue of Russian crude oil may not be a major point of contention in trade negotiations, as it is understood that India will maintain its purchases [5]. - However, the ratification of the trade deal in the European Parliament could face challenges if there is broader resistance related to the Russian crude oil issue [6]. - The outcome of these negotiations will depend on the extent of global trade disruptions at the time, but it is deemed unlikely that this will be a breaking point in negotiations [6][7].