U.S. Treasury Secretary Scott Bessent has accused India of “profiteering” from discounted Russian crude, alleging that New Delhi has engaged in arbitrage trading during the Ukraine war. In an interview with CNBC, Bessent claimed India now sources 42% of its crude imports from Russia, up from less than 1% before the conflict. “India is just profiteering. They’re reselling,” he said, calling it “Indian arbitrage”—buying cheap Russian oil and selling it as refined product, which he termed unacceptable.
This comes as the U.S. imposed a 25% tariff on Indian goods, with an additional 25% set to take effect on August 27, citing India’s increased Russian oil purchases. However, China is being treated differently. Bessent said Beijing’s imports from Russia have risen only slightly, from 13% to 16%, maintaining it was a pre-existing relationship, unlike India’s.
President Trump has avoided imposing similar tariffs on China and recently extended a tariff truce until November. Meanwhile, India suspended its 11% import duty on cotton until September 30, seen as a goodwill gesture amid stalled trade talks after a planned U.S. delegation visit was cancelled.
