The United States has once again targeted India over its oil trade with Russia. US Treasury Secretary Scott Bessent, in a strong statement, said that India is earning billions of dollars in profits by buying discounted Russian oil and reselling it. He called this “opportunistic arbitrage” and defended the decision of the Trump administration to impose higher tariffs on India.

In an interview with CNBC, Bessent claimed:
“Before the Ukraine war, less than 1% of India’s crude imports came from Russia. Today, that figure is 42%. India has pocketed nearly $16 billion (around Rs 1.3 lakh crore) in excess profits from reselling Russian oil. This opportunistic arbitrage is unacceptable.”

US justifies tariffs on India

The Treasury Secretary said that Washington’s decision to double tariffs on India — from 25% to a total of 50% — was linked directly to India’s growing oil trade with Moscow. According to him, New Delhi’s actions not only undermine Western sanctions but also enable Russian revenues amid the ongoing war.

“India is the single-largest new buyer of Russian crude after sanctions. Some wealthy families in India have benefited disproportionately from this trade. That is why we had to act,” Bessent added.

Why not China?

When asked why Beijing has not faced similar penalties, Bessent explained that China’s purchases from Russia had grown only marginally.

• Before the Ukraine war, around 13% of China’s crude imports came from Russia.

• Now the figure is 16%.
  In contrast, India’s imports surged from under 1% to 42%, making it the fastest-growing buyer of Russian crude.

“China has increased, yes, but nowhere close to India’s scale. The tariffs are targeted where arbitrage is excessive,” he said.

India’s position

India has repeatedly defended its oil purchases from Russia, saying they are essential for energy security and that New Delhi is not violating any international law. Indian officials argue that buying cheaper crude helps stabilize domestic prices for its population of 1.4 billion.

However, Washington’s escalating economic pressure — especially the 50% tariff on Indian exports — could test New Delhi’s balancing act between its strategic partnership with the US and its long-standing ties with Russia.