India Rejects U.S. Claims of Profiteering from Russian Oil Imports

India has firmly rejected accusations from the United States regarding the country’s imports of Russian crude oil. In a recent column for *The Hindu*, Indian Oil Minister Hardeep Singh Puri stated that India is not profiting from these imports but rather helping to stabilize global oil prices. This response comes amid increasing criticism from U.S. officials, particularly from Peter Navarro, a senior counselor for trade and manufacturing under the Trump Administration.

Puri emphasized that India’s adherence to international norms has been instrumental in preventing a potential oil price shock, which could have reached as high as $200 per barrel. He dismissed claims that India acts as a “laundromat” for Russian oil, stating, “Nothing could be further from the truth.” This remark directly counters Navarro’s assertion that India is profiting from the sale of refined fuels derived from cheap Russian crude to Europe and Asia.

In his critique, Navarro claimed that “Brahmins are profiteering at the expense of the Indian people,” defending the 50% tariff increase on Indian goods, with 25% of that attributed to India’s continued imports of Russian oil. Puri, however, maintained that “Russian oil has never been sanctioned like Iranian or Venezuelan crude,” and operates under a price cap system established by the G-7 and the European Union to ensure the flow of oil while limiting revenues.

India’s Position on Global Oil Markets

Puri’s statements underscore India’s significant role as the world’s third-largest crude oil importer, providing nearly 10% of global oil supply. He noted that those who criticize India’s stance overlook this critical fact, which contributes to market stability.

The ongoing debate over India’s involvement in Russian oil imports escalates as Prime Minister Narendra Modi engages in discussions with President Xi Jinping of China and President Vladimir Putin of Russia at a security summit in China. These diplomatic interactions could further influence India’s oil import strategies.

According to traders reported by Reuters, Indian refiners are expected to increase their imports of Russian crude in September 2023 compared to August. This anticipated rise is attributed to deepening discounts on Russian oil, particularly as Russia faces refining capacity constraints due to recent drone strikes in Ukraine.

In summary, India’s government asserts that its actions regarding Russian oil imports are both lawful and beneficial for global market stability. The discourse surrounding this issue highlights the complexities of international trade and geopolitical relationships in the energy sector.