'They are just profiteering': US treasury fires fresh salvo at India’s rich over Russian oil

India’s wealthiest business families are profiteering from reselling discounted Russian crude amid the Ukraine war, U.S. Treasury Secretary Scott Bessent said Tuesday, sharply escalating Washington’s criticism of New Delhi’s oil trade with Moscow.

“India is just profiteering,” Bessent told CNBC, citing a $16 billion windfall earned through resale of Russian crude. “Some of the richest families in India” are capitalizing on arbitrage, he said, calling the practice “unacceptable.”

Bessent’s remarks come on the heels of a scathing op-ed by White House adviser Peter Navarro in the Financial Times, accusing India’s energy giants of funneling profits from Russian oil “into Vladimir Putin’s war chest.”

“These proceeds flow to India’s politically connected energy titans,” Navarro wrote, naming the Ambani-led Reliance Industries and Russian-backed Nayara Energy as the biggest players. “This is unbecoming of a strategic partner,” he said.

Since Russia’s 2022 invasion of Ukraine, Indian imports of Russian crude have surged from under 1% to nearly 40%, according to Bessent. The oil is processed and exported as refined fuels to Europe, Africa, and Asia — allowing India to avoid direct sanctions while benefiting from discounted rates.

President Donald Trump, citing the ongoing trade, recently announced a punitive 25% tariff on Indian goods — atop an existing 25% levy — set to take effect August 27. New Delhi called the move “extremely unfortunate,” accusing Washington of singling it out despite similar energy strategies by other countries.

Asked why China, the largest buyer of Russian oil, faced no similar penalty, Bessent said Beijing’s import levels had shifted only modestly post-2022 and were “a completely different thing.”

India maintains its oil purchases are driven by market stability and has reiterated that U.S. officials had encouraged energy trade with Russia during earlier stages of the war.

Despite the criticism, New Delhi welcomed progress in recent Trump-Putin talks in Alaska, expressing “appreciation” for dialogue that may ease geopolitical pressures.