Ratcheting up pressure on India, another senior Trump administration has criticised New Delhi for its growing energy ties with Moscow. US Treasury Secretary Scott Bessent told CNBC in an interview that “Indian arbitrage of Russian oil is unacceptable,” underlining Washington’s stand that New Delhi was fuelling Moscow’s “war machine,” Reuters reported.
“This … Indian arbitrage – buying cheap Russian oil, reselling it as product has just sprung during the war – which is unacceptable,” Bessent said.
Defending Trump’s decision to impose steep tariffs on India for Russian oil purchase, but not on China, Bessent said, “Pre-invasion, 13% of China's oil was already coming from Russia and now it's 16%. So, China has a diversified import of their oil. If you go back and look, India had less than 1% (of oil import from Russia), and now it's up to 42%. They are just profiteering…”
Bessent said he expected US tariff revenues to rise sharply, beyond the $300 billion he had forecast earlier this year, with the additional funds to be directed toward paying down the federal debt. He did not provide a fresh figure but stressed that both he and President Donald Trump were “laser-focused” on debt reduction.
“I’ve been saying that tariff revenue could be $300 billion this year. I’m going to have to revise that up substantially,” he said.
Bessent had last week warned India of increasing secondary tariffs over the Russian oil trade, saying the raise in duties will depend on the outcome of Trump's meeting with Russian President Vladimir Putin in Alaska, which remained largely inconclusive.
In an interview to Bloomberg TV on Wednesday, Bessent said, "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."
India, the world’s third-largest consumer of crude oil, imports around 88 per cent of its energy needs. Before Russia’s invasion of Ukraine, Moscow accounted for less than 2 per cent of Indian oil imports. That share has since surged to nearly 40 per cent, making Russia one of India’s top energy suppliers.
Bessent’s criticism followed similar remarks from White House trade adviser Peter Navarro, who argued that India needed to start acting like a true US partner if it wanted to be treated like one. Writing in the Financial Times, Navarro accused India of functioning as a “global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs.”
India has vehemently rejected its criticism over purchase of Russian oil, exposing the continuing US and EU trade with Russia.
"The targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," read a statement by MEA issued earlier this year.
"India has been targeted by the United States and the European Union for importing oil from Russia after the commencement of the Ukraine conflict. In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The United States at that time actively encouraged such imports by India for strengthening global energy market stability," it added.
"India's imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by the global market situation. However, it is revealing that the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion," the statement read.
The MEA pointed out that Europe continues to import not only energy, but also fertilizers, mining products, iron and steel, and transport equipment from Russia. Meanwhile, the US still imports uranium hexafluoride for its nuclear industry, palladium for its EV sector, fertilizers, and chemicals.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
