WASHINGTON — US Treasury Secretary Scott Bessent has stated that an economic “collapse” in Russia is the only way to compel President Vladimir Putin to negotiate a peaceful resolution to the conflict in Ukraine. In an interview on Sunday, Bessent argued that the United States and its European allies must impose more sanctions and “secondary tariffs on the countries that buy Russian oil” to achieve this outcome.
While Bessent did not explicitly name India, the country has become a primary focus of US trade policy due to its significant increase in Russian oil imports. The US has already imposed a 25% “penal” tariff on India over its Russian oil deals, bringing the total import duties on most Indian products to 50%. This measure, which has been challenged in court, has been defended by the US as a form of “leverage” against Putin’s regime.
Bessent’s comments come amid escalating tensions, despite a recent meeting between US President Donald Trump and Indian Prime Minister Narendra Modi at the SCO summit in China, where they reportedly expressed mutual appreciation. However, the trade dispute has continued, with US officials, including White House trade adviser Peter Navarro, accusing India of “fueling the Russian war machinery” and acting as an “oil money laundromat for the Kremlin.” India has consistently defended its actions, citing its sovereign national interest and the energy security needs of its 1.4 billion people.
Bessent’s call for tougher sanctions follows a recent summit between Trump and Putin in Alaska, which failed to produce a lasting peace deal. The situation in Ukraine escalated on Sunday with a Russian bombing of the main Ukrainian government complex in Kyiv, which Ukrainian and European officials have called a “serious escalation of the conflict.”
India’s Role in the Russian Oil Market
Since the start of the war in 2022, India has dramatically increased its imports of discounted Russian crude. According to data from the energy analytics firm Vortexa, Russia’s share of India’s crude oil imports has risen from less than 1% before the conflict to over 36%, making Russia India’s largest oil supplier. This increased trade with Russia has been a point of contention with the US, which has also continued to import certain Russian goods, such as uranium and palladium.