New Delhi: US Secretary of State Marco Rubio has clarified why Washington has refrained from imposing secondary sanctions on China, Russia’s largest oil buyer, even as India faces steep tariffs, including a 25 per cent duty on its trade with Moscow.
According to media reports, speaking to Fox Business on Sunday, Rubio explained that the bulk of Russian oil imported by China is being refined and then resold in the global market. Imposing sanctions on Chinese refiners, he warned, could cause a significant spike in global energy prices.
“Well, if you look at the oil that’s going to China and being refined, a lot of that is then being sold back into Europe. Europe’s also buying natural gas still. Now, there are countries trying to wean themselves off it, but there’s more Europe can do with regard to their own sanctions,” Rubio said.
Rubio cautioned that targeting Chinese refiners with secondary sanctions could have far-reaching consequences.
“If you put secondary sanctions on a country, let’s say you were to go after the oil sales of Russian oil to China, well, China just refines that oil. That oil is then sold into the global marketplace, and anyone who’s buying that oil would be paying more for it or, if it doesn’t exist, would have to find an alternative source for it,” he explained.
He also noted that European nations, which buy refined Russian oil from China, have privately raised concerns about any punitive steps against Beijing.
“We have heard, when you talk about the Senate bill that was being proposed, where there was a hundred per cent tariff on China and India, we did hear from a number of European countries, not in press releases, but we heard from them, some concern about what that could mean,” Rubio said.
Asked whether similar sanctions are being considered for European nations still purchasing Russian oil and gas, Rubio responded cautiously.
“Well, I don’t know about (sanctions) on Europe directly, obviously, but certainly there are implications to secondary sanctions,” he said.
He added that the US was not looking to escalate tensions with its European allies.
“I think they can play a very constructive role here in helping us get to that point,” Rubio concluded.
