U.S. accuses India of profiteering from Russian oil during Ukraine war
Release time：2025-08-21 16:44viewed：times
From CNBC by Spencer Kimball
Treasury Secretary Scott Bessent on Tuesday accused India of profiteering from cheap Russian oil imports during the war in Ukraine, describing the practice as “arbitrage” and condemning it as unacceptable.
“They are just profiteering. They are reselling,” Bessent told CNBC’s “Squawk Box” in an interview. “This is what I would call the Indian arbitrage — buying cheap Russian oil, reselling it as product.”
“They’ve made $16 billion in excess profits — some of the richest families in India,” Bessent said.
India buys Russian oil at a discount due to sanctions, refines it into gasoline and diesel, and then sells the product back to regions that have sanctioned Moscow such as Europe, said Matt Smith, an oil market analyst at Kpler.
India’s imports of Russian oil have surged since the Kremlin launched its full-scale invasion of Ukraine in February 2022. Before the attack, India imported a minuscule amount of Russian crude.
India is now Russia’s biggest customer importing 1.5 million barrels per day in July, according to data from Kpler. China is the second-largest buyer of Russian oil, importing about 1 million bpd last month.
President Donald Trump earlier this month ordered an additional 25% tariff on India’s exports to the U.S. to punish New Delhi for buying Russian oil. The tariffs take effect next week.
Trump is threatening what he calls “secondary tariffs” on Russian oil buyers like India to pressure the Kremlin to reach a negotiated settlement with Ukraine. So far, however, the U.S. has spared China from secondary tariffs over its imports of Russian crude.
India is now Russia’s biggest customer importing 1.5 million barrels per day in July, according to data from Kpler. China is the second-largest buyer of Russian oil, importing about 1 million bpd last month.
President Donald Trump earlier this month ordered an additional 25% tariff on India’s exports to the U.S. to punish New Delhi for buying Russian oil. The tariffs take effect next week.
Trump is threatening what he calls “secondary tariffs” on Russian oil buyers like India to pressure the Kremlin to reach a negotiated settlement with Ukraine. So far, however, the U.S. has spared China from secondary tariffs over its imports of Russian crude.
