U.S. Treasury Secretary accuses India’s rich of profiteering from cheap Russian oil
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The United States has intensified its criticism of India’s increased imports of Russian crude oil, which have surged from less than 1% before Russia’s 2022 invasion of Ukraine to about 40% today, and accused some of India’s wealthiest families of profiteering by buying cheap Russian oil and reselling refined products for substantial profits.
Scott Bessent, the US Treasury Secretary, described India’s actions as “unacceptable arbitrage” that emerged during the Ukraine conflict, while Peter Navarro, a senior White House trade adviser, argued that these purchases, driven by India’s major energy companies like Reliance and Nayara, channel funds to Russia’s war efforts, undermining global attempts to isolate Moscow’s economy.
The US announced a 25% penalty tariff on India, in addition to an existing 25% reciprocal levy, set to take effect on August 27, 2025, prompting New Delhi to call the measure “extremely unfortunate” and assert that other nations engage in similar practices without facing penalties.
India defends its oil purchases as market-driven decisions, noting that the US previously encouraged such imports to stabilise global energy markets after the Ukraine war began, but the US maintains that India’s actions differ from China’s, which increased its Russian oil imports only marginally from 13% to 16% since 2022.
The criticism comes amid high-level diplomatic engagements, including a meeting between Indian energy tycoon Mukesh Ambani and US President Donald Trump, as well as a recent summit between Trump and Russian President Vladimir Putin in Alaska to discuss ending the Ukraine conflict, which India welcomed for its progress.