US accuses India of ‘profiteering’ from Russian oil; says China’s case is ‘entirely different’

US Treasury secretary Scott Bessent

US Treasury Secretary Scott Bessent criticized India for what he described as “profiteering” from its increased imports of Russian oil amid the ongoing war in Ukraine.

According to Bessent, New Delhi has been taking advantage of discounted Russian crude prices and engaging in arbitrage by reselling refined products in global markets.

Bessent defended the US decision not to take similar action against China, asserting that Beijing’s situation was “entirely different” due to its historical role as a major buyer of Russian energy.

Despite both nations maintaining trade ties with Moscow, the Treasury Secretary emphasized a clear distinction in how Washington views their respective positions.

"India is just profiteering. They are reselling," Bessent said. "What I would call Indian arbitrage - buying cheap Russian oil, reselling it as product has just sprung up during the war, which is unacceptable," he said.

Bessent told CNBC in an interview that Russian oil now accounted for 42% of India's total oil purchases, up from under 1% before the war, and contrasted that with longtime buyer China, whose Russian oil purchases had increased to 16% from 13%.

“The situation is completely different with China,” Bessent noted, implying that India’s surge in imports marks a recent shift rather than a continuation of existing trade practices.