JPMorgan Chase & Co. chief Jamie Dimon also reflected on the difficult refineries would face if they are forced to switch oil quickly.
JPMorgan Chase & Co. Chairman and CEO Jamie Dimon on Tuesday said that the United States shouldn’t punish India and global oil markets over Russian oil, even as it seeks to pressure Moscow to end the war in Ukraine.
Dimon is in India for JPMorgan’s annual investment conference hosted by the firm in Mumbai. He is also scheduled to meet executives from India’s top conglomerates during his trip.
In an interview with CNBC TV18 on Tuesday, Dimon spoke about the US’s new Russia sanctions bill and said that India and the world oil markets should not be punished over Russian oil.
Dimon said he understood the concern in America about people buying Russian oil, but he added that he thinks President Donald Trump doesn’t want to disrupt oil and other markets.
To be sure, refineries are typically designed to process specific grades of oil, limiting how easily they can switch suppliers.
In this regard, Dimon pointed out that if markets don’t buy oil at one place, they have to buy it elsewhere. “It might not be the right kind of oil for those refineries,” he added.
He further stated, “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 the focus should be on helping Ukraine more, noting 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,” the JPMorgan Chase & Co. CEO said.
The new Russia sanctions bill
Last week, Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act into law, two days after the bill was passed by the US House of Representatives.
The act grants the US President expanded authority to impose tariffs of up to 100 per cent on imports from the top five purchasers of Russian oil and gas, including India.
The bill was introduced on April 2-25 in the US Senate with the intention of crippling Russia’s energy export revenues and forcing Moscow to negotiate an end to the Ukraine war.
Based on current import volumes, the five largest purchasers of Russian crude oil and natural gas are China, India, Slovakia, Hungary, and Azerbaijan.
What India said on sanctions bill
Hours after the Russia sanctions bill was passed by the US House of Representatives, India warned that such a bill authorising tariffs of up to 100 per cent on the largest buyers of Russian oil could have implications for the bilateral relationship and the global energy markets.
The external affairs ministry said the Indian government was determined “to take all necessary measures to protect its trade and economic interests” and would work closely with trade and industry bodies to deal with the fallout.
The MEA said that the bill was discussed at “high levels in recent months with various US interlocutors,” adding that India had “very clearly articulated” the potential implications — “for not just the bilateral relationship but also the international energy market.”
Though India has increased its energy purchases from the US and Venezuela in recent months as part of its efforts to diversify, Russia remains its largest source of crude oil.
