According to a report by Reuters, U.S. Treasury Secretary Scott Bessent has expressed concerns regarding India’s significant increase in Russian oil imports amid the ongoing conflict in Ukraine. In an interview with CNBC, Bessent highlighted that Russian oil now constitutes 42% of India’s total oil purchases, a stark rise from less than 1% prior to the war.
Bessent characterized this situation as “profiteering,” suggesting that India is engaging in what he termed “arbitrage”—buying inexpensive Russian crude and reselling it at higher prices. He contrasted India’s actions with those of China, which has seen its share of Russian oil imports grow modestly from 13% to 16%. “India is just profiteering,” he stated emphatically.
This criticism comes on the heels of President Donald Trump announcing an additional 25% tariff on Indian goods as a response to New Delhi’s dealings with Russia, raising total tariffs imposed since his administration began to 50%. Trump believes these tariffs could pressure Russian President Vladimir Putin into negotiations aimed at resolving the conflict in Ukraine; however, similar measures have not been applied to China.
When questioned about why tariffs were not extended to China, Bessent noted that China’s longstanding relationship with Russia differs significantly from India’s recent activities. The U.S.-India relationship has faced challenges due to these tariffs despite earlier optimism for a trade agreement between Washington and Prime Minister Narendra Modi’s government.
In an effort to ease tensions and demonstrate willingness for dialogue on agricultural tariffs, India recently suspended an 11% import duty on cotton until September 30. This decision follows the unexpected cancellation of planned discussions between U.S. trade negotiators and Indian officials scheduled for late August.
