India profiteering from Russian crude: US Treasury Secretary renews attack

India Today

18 hours ago

US Treasury Secretary Scott Bessent has once again taken aim at India's Russian oil purchases, accusing New Delhi of profiteering at the cost of the West's sanctions regime. In an interview with CNBC, Bessent described India's practice of buying discounted crude from Moscow and reselling refined products as an 'unacceptable' arbitrage - the latest in a string of remarks where Washington has singled out India for its energy trade with Russia.advertisement'This... Indian arbitrage — buying cheap Russian oil, reselling it as product - has just sprung during the war, which is unacceptable,' Bessent told CNBC's Squawk Box. 'They are just profiteering. They are reselling.'
The sharp criticism comes even as India has consistently defended its energy trade as a matter of national interest, arguing that affordable Russian oil has been vital for meeting its growing energy needs and shielding consumers from global price shocks.DELHI IN WASHINGTON'S CROSSHAIRSThis is not the first time the Treasury Secretary has taken aim at India over its Russian oil purchases. In an interview with Bloomberg TV last week, Bessent had warned that the US could impose further secondary tariffs on India if President Donald Trump's talks with Russian President Vladimir Putin in Alaska failed to yield results.'We've put secondary tariffs on Indians for buying Russian oil. And I could see, if things don't go well, then sanctions or secondary tariffs could go up,' Bessent had said a day before the August summit.He also pressed America's European allies to match US penalties. In an interview with Fox News, Bessent accused Europe of hypocrisy, pointing out that European nations were still buying refined products from Indian refineries processing Russian crude. 'It is time for our European counterparts to put up or shut up,' he said. 'If we want a unified front, President Trump needs maximum leverage, and that means Europe doing its part.'TRUMP'S TARIFF THREAT AND INDIA'S RESPONSEPresident Trump has already announced an additional 25 per cent duty on Indian exports to the US, on top of the earlier 25 per cent levy, effectively doubling tariffs to 50 per cent. He has threatened more penalties, specifically targeting Russian oil buyers like India.Defending the measures, Trump argued earlier this month that the tariffs were instrumental in pressuring Moscow into talks. 'When you lose your second-largest customer [India] and you're probably going to lose your first largest customer, I think that probably has a role,' he said.India, however, has strongly rejected the US position, calling the tariffs 'unfair, unjustified, and unreasonable,' while maintaining that its energy imports are a matter of national security and economic stability.US'S DOUBLE STANDARDSadvertisementWhile Washington has aggressively penalised India, it has stopped short of imposing similar measures on China - despite Beijing continuing to import large volumes of Russian crude. When asked about the difference, Bessent argued that China had been a major buyer even before the Ukraine war, implying its case was less egregious.This uneven approach has sparked accusations of double standards. Critics say New Delhi is being punished while Beijing escapes secondary sanctions, despite US officials - including Secretary of State Marco Rubio - openly acknowledging that India's Russian oil purchases remain a 'point of irritation' in ties with Washington.INDIA'S RUSSIAN OIL BETIndia turned to discounted Russian crude after Western sanctions were imposed on Moscow in 2022. With a price cap of USD 60 per barrel, the purchases have dramatically reshaped India's energy basket.Russia's share in India's crude imports has soared from just 1.7 per cent in FY20 to over 35 per cent in FY25, according to official trade data. Out of 245 million metric tonnes of oil imported last fiscal year, 88 MMT came from Russia alone, making it India's largest supplier.advertisementNew Delhi has repeatedly defended its stance, arguing that affordable Russian oil has helped it cushion domestic inflation, meet rising energy needs, and sustain economic growth at a time of global volatility.THE ROAD AHEADDespite Bessent's sharp words, it remains unclear whether Washington will immediately escalate its penalties. After his Alaska summit with Putin, Trump hinted that secondary sanctions could be delayed for 'two or three weeks,' noting they would be 'devastating' if imposed right away.For now, however, India finds itself squarely in Washington's crosshairs.In the meantime, the next round of negotiations for the proposed India-US bilateral trade agreement (BTA) is expected to be delayed, with a visiting American delegation likely to defer its scheduled trip to New Delhi later this month, as per a report by news agency PTI.- EndsTune In