The United States has accused India of making large financial gains from discounted Russian oil during the Ukraine conflict. Officials described the practice as arbitrage, raising concerns about its global impact.
U.S. Treasury Secretary Scott Bessent criticized New Delhi for buying cheap Russian crude, refining it, and reselling fuel abroad. He said this approach has created “excess profits,” estimated at $16 billion, for some of India’s wealthiest families.
Data from Kpler shows India imported 1.5 million barrels of Russian oil per day in July. This volume surpassed China, which purchased about 1 million barrels daily. Before the 2022 war, India’s oil trade with Russia was negligible.
Washington claims India’s refiners convert Russian crude into gasoline and diesel. These products are then sold in markets, including parts of Europe, that placed sanctions on Moscow. U.S. officials argue the practice undermines efforts to restrict Russian energy revenues.
In response, President Donald Trump announced new trade measures. Starting next week, a 25% tariff will be imposed on Indian exports to the U.S. The administration described these as “secondary tariffs,” intended to pressure Moscow into negotiations with Kyiv.
Industry experts note that India’s role in the Russian oil market is complex. Bob McNally, president of Rapidan Energy and former White House advisor, said U.S. policy once encouraged Indian imports. He explained that after Western bans, Washington sought to stabilize global supply and prevent a surge in oil prices.
McNally added that India was part of a broader price cap system designed to limit Russia’s earnings while ensuring availability in world markets. Now, with the conflict dragging on, U.S. officials are taking a tougher stance.
India profits from Russian oil trade remain at the center of this debate. While critics in Washington demand penalties, New Delhi continues to defend its energy needs as essential for growth and stability.
For more on how the abandoned vehicles brought Karachi’s roads to a standstill, check this detailed report.
