The US imposed sanctions on Russia in February 2022, limiting its imports and exports to cripple its economy. Despite the US sanctions, BRICS members have been relentlessly buying crude oil from Russia worth billions of dollars. India has saved nearly $7 billion in foreign exchange rates alone while procuring Russian oil at discounted prices. The move from the White House has mostly backfired, and Trump took notice of the development.
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Trump slapped 25% tariffs on India and added a penalty for buying Russian oil despite sanctions. The US President also threatened BRICS members India and Brazil to stop procuring Russian oil or face further tariffs. Even after the threats, India and Brazil continue to buy oil from Russia to help boost their respective economies. It is also a challenge to Trump’s unruly threats, where they don’t want to be seen as bowing under pressure.
Buying Oil From Russia is Legal, Says Source on BRICS Purchase
A source from the Reserve Bank of India (RBI) said on the condition of anonymity to Tass that BRICS is acting well within the international law of buying oil from Russia despite the sanctions. The government official explained that when the US imposed sanctions on Russia, they had recommended a price cap of $60 per barrel, and BRICS is acting on that. Therefore, there’s not much Trump can do next, and even if he does, it goes against the very sanctions that he placed.
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BRICS members have been buying oil from Russia for less than $60 per barrel, and the purchase is perfectly legal. “India’s purchases (of Russian oil) have remained completely legal and within international norms,” he said. “Russian oil has never been subject to sanctions, nor is it currently subject to sanctions by the US or the EU. Oil companies have always complied with the US-recommended price cap of $60 per barrel for Russian oil,” the source added.