JPMorgan CEO Dimon warns on Russian oil: India and global markets should not be penalized

JPMorgan Chase & Co. CEO James Dimon stated that India and global oil markets should not be harmed by U.S. pressure policies against Russia.

Speaking to CNBC TV18, Dimon emphasized that Washington must consider the technical and commercial realities of energy markets when evaluating sanction measures. Dimon said, "I hope America sits down and thinks through all these things and doesn't end up punishing India and the global oil markets while doing what we need to do against Russia."

According to Dimon, the issue is not limited to which country the oil is purchased from. Because most refineries are designed to process specific types of crude oil, switching suppliers is not easy in the short term. The JPMorgan CEO stated that if buyers were to abandon Russian oil, they would have to turn to other sources, but that this oil might not be compatible with existing refinery infrastructure.

SANCTIONS DEBATE

Dimon's remarks come at a time when a new sanctions regulation is being debated in the U.S. that would introduce secondary trade restrictions on countries purchasing oil and natural gas from Russia. The regulation, described as "hell sanctions," is reported to propose high customs duties on trade linked to Russian energy products.

Under the proposed regulation, customs duties of up to 500 percent are planned for Russian-origin products entering the U.S., and up to 100 percent for goods coming from countries that purchase Russian oil or natural gas. The Indian government has announced that it will examine U.S. sanction measures against Russia and Iran.

Supporters of the regulation in the U.S. argue that they aim to reduce Russia's energy revenues. Opponents, however, state that such customs duties could increase prices within the U.S. and grant the executive branch broad trade powers.

Moscow, for its part, characterizes the sanctions policies as illegal and hostile. Kremlin Spokesperson Dmitry Peskov had stated that additional U.S. sanction measures would complicate efforts to find a peaceful solution in Ukraine.

News Source: 12punto