US says sanctions on China could disrupt global oil prices, while India bears heavy tariffs for trade with Moscow.
Why China Was Spared From Sanctions
US Secretary of State Marco Rubio explained that despite China being Russia’s largest oil buyer, Washington has avoided imposing secondary sanctions on Beijing.
- Most of Russia’s oil shipped to China is refined and then resold in the global market.
- A ban on Chinese refiners could trigger a steep rise in global energy prices.
- European nations, heavily reliant on refined Russian oil from China, have expressed unease over sanctions targeting Beijing.
Rubio stressed that sanctioning China directly could destabilize energy supply chains and hurt Europe’s already strained markets.
Why India Faces Heavy Tariffs
While China was spared, India has been hit with 50% tariffs on Russian oil trade, including a 25% duty on New Delhi’s imports from Moscow.
According to Rubio:
- India’s direct purchases from Russia bypass global refining markets.
- The US is pushing New Delhi to reduce dependency on Moscow.
- Sanctions aim to limit Russia’s oil revenue while keeping global markets stable.
Sanctions Could Push Oil Prices Higher
Rubio warned that blanket sanctions could make oil costlier worldwide:
“If you go after Russian oil sales to China, it would impact the global marketplace. Buyers would face higher costs or struggle to find alternatives.”
He emphasized that sanctions need to be balanced with energy market realities.
Europe’s Role in the Oil Trade
When asked why Europe isn’t facing similar tariffs despite buying Russian oil via China, Rubio said:
- European nations have raised concerns privately over harsher sanctions.
- Europe continues to buy Russian natural gas while trying to reduce reliance.
- Rubio noted he does not want a sanctions “tit-for-tat” with Europe but urged the EU to play a constructive role.
Marco Rubio’s remarks highlight Washington’s balancing act between punishing Russia and safeguarding global energy stability. While India faces steep tariffs for its direct trade with Moscow, China has been spared to avoid disrupting oil markets and upsetting Europe. The debate underscores how geopolitics, energy security, and economic interests continue to shape America’s sanctions strategy.
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