 (7).png)
5 months ago
9
ARTICLE AD BOX
In his sharpest remarks yet on India’s energy trade, the US Treasury Secretary, Scott Bessent, has alleged that New Delhi is engaging in “arbitrage” — purchasing heavily discounted Russian crude and reselling it at higher margins on the global market. The accusation, if sustained, could place renewed pressure on India’s carefully balanced foreign policy, which has so far allowed it to maintain close ties with both Moscow and Washington despite the ongoing war in Ukraine.
Bessent told CNBC in an interview that India had made huge profits on the sale of Russian oil during the war in Ukraine.
"This ... Indian arbitrage - buying cheap Russian oil, reselling it as product has just sprung during the war - which is unacceptable," he said.
What did the US Treasury Secretary say?
In the latest remarks, the US Treasury Secretary has alleged that India is engaging in what she termed “arbitrage” — buying deeply discounted Russian crude oil and reselling it for profit in international markets.
The statement, which comes amid intensifying Western efforts to curtail Moscow’s wartime revenues, underscores growing unease in Washington over New Delhi’s energy policy.
Why is India buying Russian oil?
Since the start of the war in Ukraine, India has emerged as one of the largest buyers of Russian crude, capitalising on price discounts offered by Moscow to secure alternative markets.
New Delhi has consistently defended its purchases, stressing that they are driven by energy security and affordability concerns for its 1.4 billion citizens.
Officials have also highlighted that India refines much of this crude domestically, thereby meeting both local demand and global supply needs.
‘US Tariff Revenues Will Increase’
Bessent said he expects a substantial increase in tariff revenues from the $300 billion he forecast earlier this year, and said the money would be used to start paying down the sizeable U.S. federal debt.
Bessent, speaking in an interview on CNBC, declined to give a specific new revenue forecast, but said he and President Donald Trump were "laser-focused" on paying down the debt.
"I've been saying that tariff revenue could be $300 billion this year. I'm going to have to revise that up substantially," he said.
What could this mean for India–US relations?
Analysts suggest that while the accusation is unlikely to rupture ties, it adds a layer of tension at a delicate moment.
New Delhi continues to seek deeper defence and technology cooperation with Washington, even as it maintains a longstanding partnership with Moscow in energy and military supplies.
A prolonged standoff over crude oil could complicate India’s diplomatic balancing act, especially with the United States heading into a crucial election year.
The bigger picture
For Washington, targeting India’s energy dealings is part of a broader push to tighten enforcement of sanctions against Russia. For New Delhi, the question remains one of sovereignty and pragmatism: should a country facing soaring energy needs be compelled to bear the costs of a war it did not start?
English (US) ·