U.S. Treasury Official Bessent Levels Accusations Against India for Capitalizing on Russian Oil Profits
In a recent interview with CNBC, Scott Bessent, US Treasury Secretary, accused India of profiteering from increased purchases of Russian oil during the ongoing war in Ukraine. He described the practice as "Indian arbitrage" or buying cheap Russian oil and reselling it as product.
Bessent's accusations come as the US has imposed additional tariffs of up to 50% on Indian goods, primarily as a retaliation against India’s increased purchases of discounted Russian oil. This includes an initial 25% tariff announced earlier, with an additional 25% raising the total to 50%.
The US's approach to India differs from that of China in terms of tariff enforcement. While Chinese Russian oil imports rose modestly to 16% from 13%, there is no comparable US tariff retaliation on China over its oil imports from Russia. Bessent explained the situation with China as "completely different" due to Beijing being a long-term buyer and not engaging in "arbitrage" like India.
India has criticized the US for targeting it over Russian oil purchases while apparently giving a pass to China and European countries, which also import Russian oil. This indicates a potential double standard in the US's approach to trade relations.
Here's a comparison of the treatment of Indian and Chinese Russian oil imports:
| Aspect | India | China | |-------------------------------|------------------------------------------------|----------------------------------| | Russian oil imports treatment | Facing additional US tariffs up to 50% | No comparable US tariff retaliation| | US rationale | Punishment for purchasing discounted Russian oil during geopolitical tensions | No similar punitive trade measures noted | | India’s reaction | Criticism of US for double standards | Not applicable |
Trump has not yet imposed similar duties on China over its oil imports from Russia. Trump credits the tariffs with increasing pressure on Russian President Vladimir Putin to end the war in Ukraine. However, Bessent did not provide details on the potential consequences for India's actions.
The increased purchases of Russian oil by India have sprung up during the war, according to Scott Bessent. Before the war, Russian oil accounted for less than 1% of India's total oil imports, but it now accounts for 42%. This significant increase has raised concerns in the US about India's role in the ongoing geopolitical tensions.
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