US Shouldn’t Punish India, Global Oil Markets Over Russian Crude’: JPMorgan CEO Jamie Dimon

JPMorgan Chase & Co. Chairman and CEO Jamie Dimon on Tuesday said the United States should avoid punishing India or global oil markets over Russian crude as Washington seeks to pressure Moscow to end the war in Ukraine.

Dimon made the remarks during his visit to India for JPMorgan’s annual investment conference in Mumbai. He is also scheduled to meet senior executives from some of India’s leading conglomerates.

In an interview with CNBC-TV18, Dimon discussed the US’ new Russia sanctions legislation and said Washington should consider the wider impact of measures targeting countries that purchase Russian oil.

“I think hopefully America will sit down and understand all those issues and, you know, not end up punishing India and the world oil markets while doing what we need to do to combat Russia,” Dimon said.

‘Not Sure We Should Put Tariffs On Oil’

Dimon said he understood concerns in the US about countries continuing to purchase Russian oil but suggested that President Donald Trump would not want to disrupt global energy and other markets.

He pointed out that refineries are generally designed to process specific grades of crude, meaning they cannot always switch suppliers easily.

“If markets don’t buy oil at one place, they have to buy it elsewhere,” Dimon said, adding that the replacement crude “might not be the right kind of oil for those refineries.”

The JPMorgan CEO said the focus should remain on supporting Ukraine and noted that there are “multiple ways” to do so.

“This (sanctions) might be one small way, but I’m not sure we should be putting any kind of tariffs on oil. We should have a conversation about what you do and how you do it,” he said.

New US Russia Sanctions Bill

Last week, Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act into law, two days after it was passed by the US House of Representatives.

The legislation gives the US president expanded authority to impose tariffs of up to 100% on imports from the five largest purchasers of Russian oil and gas, including India.

The bill was introduced in the US Senate on April 2, with the stated aim of reducing Russia’s energy export revenues and increasing pressure on Moscow to negotiate an end to the Ukraine war.

Based on current import volumes cited in the legislation, the five largest purchasers of Russian crude oil and natural gas are China, India, Slovakia, Hungary and Azerbaijan.

India Warns Of Impact On Global Energy Markets

India had earlier warned that the sanctions legislation could affect both bilateral ties with Washington and global energy markets.

The Ministry of External Affairs said New Delhi was determined “to take all necessary measures to protect its trade and economic interests” and would work with trade and industry bodies to address the potential impact.

The MEA said the issue had been discussed at “high levels in recent months with various US interlocutors” and that India had “very clearly articulated” the potential implications for both the bilateral relationship and international energy markets.

India has increased crude purchases from countries including the US and Venezuela as part of efforts to diversify its energy supplies. However, Russia remains the country’s largest source of crude oil.

According to the Global Trade Research Initiative (GTRI), Russia accounted for 51.1% of India’s crude oil imports in July, exceeding supplies from the UAE, Saudi Arabia, Venezuela, Brazil, Oman and the US combined.