U.S. Treasury Secretary Scott Bessent on Tuesday accused India of profiteering from cheap Russian oil, saying the country has boosted its reliance on Moscow’s crude from less than 1% before the Ukraine war to 42% today, reaping an estimated $16 billion in excess profits through resale.
Bessent’s post on X said: “Before the war in Ukraine, less than 1% of India’s oil came from Russia. Now it is 42%. The system is allowing India to profiteer by buying cheap Russian oil, reselling it, and pocketing $16B in excess profits. This opportunistic arbitrage is unacceptable.”
Are his accusations and allegations true? Since Russia’s invasion of Ukraine in 2022, global energy markets have shifted dramatically, with India’s oil import strategy emerging as one of the most striking changes. U.S. officials claim India has increased its reliance on Russian crude from less than 1% to 42% and profited by $16 billion through resale. While the figures reflect observable trends, the framing of these claims warrants closer scrutiny.
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Before the Ukraine war, India sourced the vast majority of its oil from the Middle East, with Russia contributing less than 1% of its imports. As of 2025, that figure has soared to between 35% and 44%, depending on the month, a verified shift driven by heavy discounts offered by Moscow amid Western sanctions. This pricing advantage made Russian crude extremely attractive to Indian refiners, who could buy it cheap, refine it, and sell petroleum products globally, including to the very Western nations that imposed the sanctions.
The second part of the claim, that India has made $16 billion in profits from this activity, is partially accurate. This number has been cited by Bessent, who accuses India of exploiting global sanctions for profit. It is also echoed by senior figures in the Trump administration, who have publicly criticized India’s trade practices with Russia.
The $16 billion figure is a political estimate, not an independently verified number. No public audit or third-party financial data confirms that Indian refiners have netted exactly that amount. While it’s plausible that India has profited significantly, the exact scale remains speculative.
Furthermore, reselling refined oil is standard practice in global energy markets. Crude oil is bought and processed into gasoline, diesel, and aviation fuel, commodities that are then traded worldwide. India is one of the world’s largest exporters of refined petroleum products. Refining discounted oil from Russia and selling it abroad doesn’t violate any sanctions or laws. Many analysts argue that this is economic pragmatism, not exploitation.
The Trump administration’s stance reflects growing geopolitical tensions. As the U.S. ramps up efforts to isolate Russia, it views India’s economic ties with Moscow as undermining Western pressure. However, Washington’s accusations can be seen as selectively critical.
For one, the U.S. itself continues to import Russian commodities via third parties or loopholes. Secondly, Western companies have long benefited from global arbitrage, yet when a developing country like India does it, it is labeled profiteering.
The U.S. may also be using the claim to exert diplomatic pressure on India to shift its foreign policy stance, particularly ahead of key international summits or defense agreements. Highlighting the $16 billion windfall may be less about facts and more about leveraging moral arguments to drive political alignment.