U.S. accuses India of profiteering from Russian oil during Ukraine war
Treasury Secretary Scott Bessent accused India of emphasizing from cheap Russian oil imports during the war in Ukraine on Tuesday, describing the practice as a “Arbitrage” and condemned as unacceptable.
CNBC’s “Squawk Box” in an interview, “only emphasis. He continued:” This, I called the Indian Arbitrage – buy cheap Russian oil, to sell as a product. “
“They made more profits of $ 16 billion – some of the richest families in India.” He said.
India purchases Russian oil due to sanctions, refining gasoline and diesel, and then sells the product back to sanctions such as Moscow, such as Europe.
India’s Russian oil imports have increased since the Kremlin launched a full -scale invasion of Ukraine in February 2022. Before invading, India imported a small amount of Russian raw pomegranates.
According to KPLER data, the new Delhi imports 1.5 million BPD in July, Russia’s largest customer in July. China is the second largest buyer of Russian oil importing about 1 million BPD last month.
At the beginning of this month, President Donald Trump ordered 25% more tariffs to punish the new Delhi for the purchase of Russian oil for India’s exports to the United States. Tariffs come into force next week.
Trump threatens to force the Kremlin to reach an agreement with Ukraine, which he calls “secondary tariffs” in Russian oil buyers such as India. However, so far, the United States has saved China from secondary tariffs about Russian raw pomegranate imports.
When asked about China’s import, Bessent claimed that Beijing’s imports were less awful in the eyes of the Trump administration, because Russia was a great buyer before invading Ukraine.
However, Rapidan Energy President and President George W. Bush’s former adviser Bob McNally said that India was actually getting Russian oil on the orders of the United States.
The Biden administration had asked India to accept Russian oil, and other countries brought prohibitions to prevent a large oil price increase after Ukraine invasion, which would result in high gasoline prices in the USA.
“In the price limit sanction mechanism designed by India, US and European allies, he played an important role in trying to break the income earned in the price limit sanction mechanism designed by his allies.” He said.
CNBC reached the Indian Embassy in the USA to comment.
