A U.S. Treasury Secretary Scott Bessent on Tuesday accused India of “profiteering” and “making billions” from its purchases of Russian oil. In an interview with CNBC, Bessent said that India’s actions were “unacceptable,” particularly amid the ongoing war in Ukraine.
Bessent’s remarks, which were the sharpest from a senior U.S. official to date, came as the deadline for a new 25% U.S. tariff on Indian goods is set to take effect. President Donald Trump announced the additional tariff earlier this month as a form of punishment for India’s continued purchases of Russian oil, which has been sanctioned by Western nations.
“This… Indian arbitrage—buying cheap Russian oil, reselling it as product has just sprung during the war—which is unacceptable,” Bessent said. He added that India’s purchases of Russian oil were benefiting the country’s “richest families.”
When asked why the U.S. has not imposed similar tariffs on China, which is also a significant buyer of Russian oil, Bessent said that Beijing’s situation was “completely different” as it had “diversified oil imports” and was a long-time buyer. He claimed that China had not engaged in the same kind of “arbitrage” as India.
The comments add to the growing tension between the two countries, which has also seen the abrupt cancellation of a planned visit by U.S. trade negotiators to New Delhi. India, meanwhile, has defended its oil purchases by stating that they are guided by national interest and the need to secure affordable energy for its 1.4 billion citizens.