“Russian Oil Trade” has become a highly contentious issue as the U.S. alleges that India is engaging in arbitrage—buying Russian crude at steep discounts and selling refined products abroad. With imports soaring to 42% of India’s oil supply, critics argue this sharp increase signals profit-driven motives amid the Ukraine conflict.
The United States has sharply criticized India’s deepened reliance on Russian Oil Trade, accusing New Delhi of profiteering amid the Ukraine war. U.S. Treasury Secretary Scott Bessent labeled India’s approach as “arbitrage,” suggesting the country buys cheap Russian crude, refines it, and then exports the resulting fuels—earning substantial gains in the process. Previously, Russian oil accounted for less than 1% of India’s imports; that figure has now surged to 42%, a stark contrast to China’s more modest rise from 13% to 16% ReutersFinancial Timeswww.ndtv.comAl Jazeera.
In response to these actions, President Donald Trump has imposed an additional 25% tariff on Indian goods, bringing the total additional tariffs to 50% Reuters+1.Russian Oil Trade Analysts estimate that India’s oil refiners—particularly major players—have amassed about $16 billion in excess profits, with Mukesh Ambani’s Reliance Industries alone capturing nearly $6 billion of that windfall The Times of IndiaIndia TodayFinancial Times.
The U.S. move, aimed at pressuring Russia toward peace, has triggered backlash: India contends the tariffs are unjustified and hurt its 1.4 billion people, while Russia has denounced them as double standards and pledged support to India in defiance of Western pressure The Times of IndiaReutersWikipediawww.ndtv.com.
Summary
India has dramatically increased its reliance on Russian oil trade, with imports rising from less than 1% to 42% of its crude supply. The U.S. accuses India of profiteering by purchasing Russian crude at discounted rates, refining it, and exporting fuel products for huge profits—estimated at $16 billion, with Reliance Industries alone gaining $6 billion. In response, President Trump has imposed 50% tariffs on Indian goods. India defends its position, calling the tariffs unfair, while Russia backs India, criticizing U.S. sanctions as double standards.
