Russia expects India to keep buying its oil and seeks China-India-Russia talks

By Krishna N. Das and Aftab Ahmed

NEW DELHI (Reuters) -Russia expects to continue supplying oil to India despite warnings from the United States, Russian embassy officials in New Delhi said on Wednesday, adding that Moscow hopes trilateral talks will soon take place with India and China.

U.S. President Donald Trump has announced an additional tariff of 25% on Indian goods exported to the U.S. from August 27, as a punishment for buying Russian oil, which constitutes 35% of India's total imports compared with a negligible 0.2% before the Ukraine war.

"I want to highlight that despite the political situation, we can predict that the same level of oil import (by India)," Roman Babushkin, the charge d'affaires at the Russian embassy in India, told a press briefing. 

He predicted India and Russia would find ways to overcome Trump's latest tariffs in their "national interests".

Trade talks between India and the U.S. broke down over the opening up of India's vast farm and dairy sectors, as well as its purchases of Russian oil. The total tariff announced on Indian goods entering the U.S. is 50%.

The Indian foreign ministry did not immediately reply to an emailed request for comment.

It has previously said the U.S. decision to single out India for Russian purchases was "extremely unfortunate".     

Russia's Deputy Trade Commissioner Evgeny Griva on Wednesday said buying oil from Russia is "very profitable" for India, which will not want to change its supplier.

On average Russia gives a 5%-7% discount to Indian buyers, he said, adding that Russia has a "very, very special mechanism" to continue oil supplies to India.

In addition, he said Russia had started accepting Indian rupee payments for its goods after the resolution of issues that had trapped billions of dollars worth of funds in Indian banks. 

'GREATER EURASIAN PARTNERSHIP'

As tensions between Washington and New Delhi rise, high-profile visits from New Delhi and Beijing in recent weeks have raised hopes on the part of the Asian neighbours that ties damaged by a 2020 border clash can be repaired. 

Indian Prime Minister Narendra Modi plans to visit China for the first time in over seven years later this month.

The planned visit was reported by Reuters last week, even as other high profile exchanges, including Chinese Foreign Minister Wang Yi's two-day visit to New Delhi, concluded.

At the same time, Russia is trying to revive long-standing plans for a trilateral meeting with India and China to help them forge a "greater Eurasian partnership".

"As far as the trilateral is concerned, we are quite hopeful that this format will be resumed sooner rather than later because its importance is not questioned," Babushkin said.

"This is closely linked to the Russian initiative of the establishment of the greater Eurasian partnership," Babushkin said. 

Russian President Vladimir Putin will meet Modi in New Delhi by the end of year, he said. Putin, Modi and Chinese President Xi Jinping are also expected to all attend the Shanghai Cooperation Organisation starting August 31.

(Reporting by Krishna Das and Aftab Ahmed, writing by Shilpa Jamkhandikar; Editing by Tom Hogue, Christian Schmollinger and Barbara Lewis)