US Treasury Secretary Scott Bessent has once again targeted India’s energy trade with Russia, accusing New Delhi of exploiting sanctions by buying discounted crude and reselling refined products for profit. In a sharp interview with CNBC, Bessent called this practice “unacceptable,” alleging that India was engaging in arbitrage at the West’s expense. His remarks mark the third time in ten days that Washington has publicly criticised India’s Russian oil purchases, intensifying tensions between the two strategic partners.
India, however, has consistently defended its stance, insisting that Russian crude imports are a matter of national interest. Officials argue that access to cheaper oil has shielded Indian consumers from global price shocks, helped curb inflation, and ensured energy security for a rapidly growing economy.
Bessent’s comments come against the backdrop of fresh threats from Washington. Last week, he told Bloomberg TV that if President Donald Trump’s summit with Russian President Vladimir Putin in Alaska failed, the US could escalate secondary tariffs on India. He reiterated this on Fox News, calling out European nations for “hypocrisy” in purchasing refined fuels from Indian refineries using Russian crude, while pressuring India to cut ties with Moscow.
The US has already doubled tariffs on Indian exports, with Trump imposing an additional 25 per cent levy earlier this month. He defended the move, saying higher tariffs were vital for pressuring Moscow by depriving it of key customers. Trump hinted that India’s massive oil imports from Russia — now accounting for over 35 per cent of its crude basket — had been a major factor in forcing Putin into talks.
Yet Washington’s approach has sparked charges of double standards. While India has faced repeated penalties, the US has refrained from imposing similar measures on China, which continues to import large volumes of Russian oil. Bessent argued that China’s case was “different” as it had been a major buyer even before the Ukraine war, but critics claim India is being unfairly singled out.
India began ramping up Russian oil purchases after Western sanctions were introduced in 2022, with imports rising from just 1.7 per cent of its crude basket in FY20 to 35 per cent in FY25. Out of 245 million metric tonnes imported last fiscal year, 88 MMT came from Russia, making it India’s largest supplier. New Delhi maintains that without affordable Russian crude, both inflation and economic growth would have suffered significantly.
Despite the heated rhetoric, Washington has not yet confirmed whether new penalties will be imposed immediately. Trump said after his Alaska summit with Putin that secondary sanctions could be delayed for “two or three weeks,” admitting they would be “devastating” if implemented right away.
Meanwhile, the growing rift is expected to affect wider trade ties. A planned American delegation visit to New Delhi later this month for talks on the proposed bilateral trade agreement is likely to be postponed, according to PTI. For now, India remains firmly in Washington’s crosshairs as the dispute over Russian oil trade escalates.
