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Rubio Calls Russian Oil Imports a Strain on India-US Relations

August 1, 2025
in Business & Economy, Politics, World
Rubio Calls Russian Oil Imports a Strain on India-US Relations
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Published: 01 August 2025 | The English Chronicle Desk

The long-standing strategic partnership between India and the United States has hit a turbulent stretch, as U.S. Secretary of State Marco Rubio described India’s continued oil imports from Russia as a “point of irritation” in bilateral ties. His comments, made in an interview with Fox News Radio, follow U.S. President Donald Trump’s announcement of a potential 25% tariff on Indian goods, along with an unspecified penalty, as retaliation for India’s ongoing energy and defense deals with Moscow.

While affirming India as an “ally” and a “strategic partner,” Rubio emphasized that Delhi’s deepening commercial links with Russia — particularly in the energy sector — are creating diplomatic discomfort in Washington. In 2024, Russian oil accounted for 35% to 40% of India’s total crude imports, a sharp increase from just 3% in 2021.

India, on its part, has defended its oil procurement strategy. Officials argue that for a nation with enormous energy needs and millions living under economic strain, buying cheaper Russian crude is an economic necessity. The ramp-up in Russian oil imports began after the onset of the war in Ukraine, as Western sanctions drove prices down and made Moscow’s crude an attractive alternative.

Rubio acknowledged India’s logic but reiterated that such purchases help fuel Russia’s ongoing military campaign. “With so many other vendors available, it’s frustrating to see India remain so reliant on Russian oil,” he stated. President Trump’s threats of punitive measures against Indian firms trading with Russia reflect that frustration.

Recent data points to a shift, however. Reuters reported that state-run Indian oil refiners, including Hindustan Petroleum, Indian Oil, BPCL, and MRPL, have halted Russian crude imports in recent weeks due to declining discounts. HSBC Global Investment Research observed a “significant decline” in Russian oil imports in July. India’s petroleum ministry has officially denied directing refiners to scale back, yet Petroleum Minister Hardeep Singh Puri noted that the country is now sourcing oil from around 40 different nations — up from 27 — preparing for possible disruptions.

Experts believe a reduced reliance on Russian oil would not significantly affect India’s current account deficit, especially as the price gap between Russian Ural and Brent Crude has narrowed from $20 to just $3 per barrel, according to CareEdge.

Meanwhile, Trump’s public criticism of India-Russia trade relations has drawn a sharp and symbolic rebuttal from Moscow. On Truth Social, Trump wrote dismissively that he didn’t care how India and Russia managed their ties, declaring, “They can take their dead economies down together, for all I care.”

The statement provoked a dramatic response from Dmitry Medvedev, Deputy Chairman of Russia’s Security Council. In a Telegram post, he invoked apocalyptic imagery, referencing the TV series The Walking Dead and alluding to “Dead Hand,” a Soviet-era nuclear command system designed to launch weapons automatically if an incoming strike was detected. Though the system’s existence is disputed, the comment was widely interpreted as a warning — aimed more at rekindling Cold War-era deterrence psychology than actual threat.

As tensions escalate, India now finds itself carefully balancing economic pragmatism with diplomatic sensitivity, navigating pressure from Washington without alienating Moscow — a task growing increasingly complex as geopolitical chess games continue to unfold.

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Diageo Faces Profit Slump and Tariff Blow Amid Leadership Crisis Published: 05 August '2025. The English Chronicle Desk Diageo, the world’s leading spirits producer and owner of iconic brands such as Guinness, Johnnie Walker, and Smirnoff, has reported a sharp 28% fall in its annual operating profits. This downturn has been attributed to a combination of internal challenges, shifting consumer habits, and external economic pressures—including a looming $200 million hit from new U.S. tariffs imposed under former President Donald Trump's trade policy. The company, listed on the FTSE 100, is also navigating a leadership transition following the sudden resignation of CEO Debra Crew. Crew’s departure, said to be by mutual agreement, came amid growing concern among investors over the company’s declining share price and overall performance. She had taken charge in 2023 after the unexpected death of long-serving and well-respected CEO Ivan Menezes. Under Crew, Diageo faced multiple setbacks, including sluggish sales in Latin America and supply chain issues that caused a Guinness shortage during last year’s holiday season. Interim CEO Nik Jhangiani, the company’s current CFO, has expanded Diageo’s cost-cutting initiative, increasing the savings target from £500 million to £625 million. While some roles are expected to be cut, Jhangiani emphasized that the overall workforce may still grow as part of a broader restructuring. Despite the challenging year, he pointed to strong performances from certain products such as Guinness, Don Julio tequila, and Crown Royal Blackberry as bright spots in an otherwise underwhelming fiscal report. Compounding its financial concerns, Diageo is bracing for a significant hit from newly enforced U.S. tariffs. The 10% levy on UK-imported spirits, along with a 15% tax on EU imports—while sparing Mexican and Canadian products—is expected to cost the company approximately $200 million annually. These tariffs took effect after the implementation of the UK-US trade agreement on 30 June, with additional EU tariffs set to begin on 7 August. In response, Diageo has ramped up contingency planning, aiming to counter the tariff effects through inventory management, supply chain adjustments, and the reallocation of investments. According to internal projections, these measures could offset up to half of the anticipated financial impact. Despite these efforts, Diageo’s stock has plummeted over 25% since the start of the year, placing it among the poorest performers on the FTSE 100 index. Analysts also point to broader market trends, such as shifting drinking habits among younger consumers and the ongoing cost-of-living crisis, as factors contributing to the public’s growing preference for more affordable, non-premium brands. With a new CEO yet to be named and economic headwinds continuing to buffet the global spirits industry, Diageo stands at a crossroads—needing to stabilize operations, restore investor confidence, and adapt to an evolving market landscape.
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