WASHINGTON (Diya TV) — The United States is intensifying pressure on India over its oil trade with Russia. U.S. Treasury Secretary Scott Bessent has criticized New Delhi for what he called “unacceptable” profiteering by buying cheap Russian crude and reselling it at higher rates.
Before Russia’s invasion of Ukraine in February 2022, less than 2 percent of India’s crude imports came from Moscow. That figure has now climbed to about 40 percent, making Russia India’s largest oil supplier. India, the world’s third-largest oil consumer, relies on imports for 88 percent of its demand.
Bessent told CNBC in an interview that India’s role in global energy trade had shifted sharply during the war. “This … Indian arbitrage – buying cheap Russian oil, reselling it as product has just sprung during the war – which is unacceptable,” he said.
In a post on X, he accused India of exploiting the system. “The system is allowing India to profiteer by buying cheap Russian oil, reselling it, and pocketing $16 billion in excess profits,” he wrote.
On August 6, Washington raised tariffs on Indian oil imports, adding an additional 25 percent duty. The new levy doubles the total tariff to 50 percent, making India one of the most heavily taxed U.S. trade partners.
India’s government rejected the move, calling it “unfair, unjustified and unreasonable.” Officials in New Delhi said they would take “all actions necessary” to safeguard the nation’s interests.
Bessent was asked why the U.S. had not taken similar action against China, another large buyer of Russian crude. He said the cases were not comparable. According to him, Beijing was a long-term purchaser of Russian oil, while India was exploiting a sudden price gap caused by Western sanctions.
“This is completely different,” Bessent said. He stressed that India’s actions were fueling Moscow’s “war machine.”
The treasury secretary also linked the tariff hike to U.S. fiscal goals. He said the higher duties would raise more revenue than earlier projections. He had previously estimated $300 billion in tariff income this year, but now expects a “substantial” increase.
“I’ve been saying that tariff revenue could be $300 billion this year. I’m going to have to revise that up substantially,” Bessent said. He added that he and President Donald Trump were “laser-focused” on reducing the federal debt.
The oil dispute comes at a sensitive time for Washington and New Delhi. A planned visit by a U.S. trade delegation to India later this month has been halted, The Indian Express reported.
The delay reflects ongoing disagreements over trade policy. India has long resisted opening its markets to U.S. agricultural goods, while the Trump administration has prioritized farm exports in negotiations.
Bessent said India had been “a bit recalcitrant” in the talks. The standoff threatens to slow progress on several trade agreements between the two nations.
The criticism from Bessent followed sharp comments from White House trade adviser Peter Navarro. Writing in the Financial Times, Navarro argued that India must act like a U.S. strategic partner if it wants to be treated as one.
“India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro wrote. He accused India of “cozying up to both Russia and China.”
Navarro outlined how he believes the oil trade operates. He said U.S. consumers buy Indian goods, India then uses those dollars to purchase Russian oil, and Russian crude is refined and resold worldwide. According to him, Russia gains hard currency to continue its war in Ukraine, while U.S. and European taxpayers shoulder higher costs for Ukraine’s defense.
Indian officials have consistently defended their purchases of Russian crude, saying they are guided by energy security and price stability. With global oil prices volatile, New Delhi argues that affordable Russian oil helps meet the needs of its growing economy.
Despite U.S. pressure, India has not signaled any plan to scale back its Russian imports. Instead, officials say they will act to protect national interests in both energy and trade.
