US buys Indian-refined Russian oil, then penalizes India for it? Sushant Sareen calls it out

Security analyst Sushant Sareen slammed the U.S. tariff policy on India as contradictory, pointing out that Washington is exempting Indian-refined Russian oil imports from penalties—while penalizing India for importing that very oil.

“US buying Russian oil processed by India is not subjected to penalties imposed on India; but Indian exports will be penalised for India buying Russian oil and processing it. Make sense of this if you can,” Sareen wrote in a post on X, calling out what he sees as a glaring policy paradox.

His comments were in response to a post highlighting that the 25% tariff imposed by the Trump administration doesn’t apply to Indian exports of refined Russian crude—such as gasoline or diesel—sold back to the U.S.

Under Trump’s new executive order, all Indian goods imported into the U.S. face a 50% tariff—up from the current 25%—as a punitive measure tied to India’s continued imports of Russian oil. Yet, energy products remain exempt.

The loophole means that while India is being penalized across sectors for its Russian oil ties, energy exports refined from that same crude remain tariff-free if shipped to the U.S.

The inconsistency has sparked criticism from analysts and officials alike. Sareen’s remark underscores a broader frustration in Indian policy circles, where many view the U.S. move as both economically punitive and strategically incoherent.