Washington, D.C. — The administration of former US President Donald Trump has publicly voiced its sharp disapproval of India’s continued purchase of Russian oil, asserting that the South Asian nation is not aligning with global expectations during a time of heightened geopolitical tensions. Speaking to media, US Treasury Secretary Scott Besant delivered a stern critique, accusing India of undermining global sanctions against Russia and jeopardizing bilateral trade relations with the United States.
Besant stated that India’s ongoing importation and refining of Russian crude oil, followed by the export of refined petroleum products, is seen as a direct affront to international efforts aimed at isolating Moscow following its military actions in Ukraine. The remarks have triggered diplomatic ripples and cast a shadow over future US-India trade agreements.
India’s Oil Trade with Russia: A Growing Concern for the US
India, the world’s third-largest importer of crude oil, has ramped up its purchases of discounted Russian oil ever since Western sanctions made it less attractive to European and American buyers. The move, while economically beneficial for India, has drawn sharp criticism from Western allies who argue that such transactions dilute the impact of global sanctions on the Kremlin.
Treasury Secretary Besant elaborated that India’s strategy of purchasing cheap Russian oil, refining it into fuels such as diesel and gasoline, and then exporting it to global markets—including potentially to countries enforcing sanctions—undermines the spirit of international unity against Russian aggression.
“India has failed to present itself as a responsible global power,” said Besant. “This kind of behavior sends the wrong message to the world and complicates the efforts of countries standing against Russia’s war in Ukraine.”
A Strained Bilateral Relationship: US-India Trade Under Scrutiny
Besant also revealed that the Trump administration viewed India’s behavior as a serious impediment to deepening economic ties, adding that future trade agreements will be conditional on India’s cooperation with US-led sanctions and foreign policy initiatives.
“President Trump and the entire administration are very disappointed with India’s choices. If India wishes to maintain and grow its trade relationship with the United States, it needs to act in accordance with global norms,” he emphasized.
This rhetoric underscores a broader recalibration of US foreign policy towards India, one of its strategic partners in the Indo-Pacific region, and reflects growing American impatience with countries perceived to be sitting on the fence in the face of escalating global conflicts.
Trump’s Warning on Russian Oil: A Turning Point
The warning referred to by Besant harkens back to a July 14 directive from former President Donald Trump, in which he cautioned that countries continuing to import Russian oil could face up to 100% tariffs on exports to the United States. The policy move was part of Trump’s broader campaign to economically isolate Russia and force compliance through secondary sanctions.
Following that announcement, several countries reduced or paused their energy dealings with Russia. India’s state-owned refineries, including Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), and Bharat Petroleum, temporarily halted new contracts for Russian oil. However, industry analysts report that some trade resumed quietly, especially through indirect channels or with blended crude, complicating efforts to trace the origin.
India’s Justification: Energy Security and Economic Stability
In response to mounting criticism, Indian officials have defended their oil purchasing strategy, stating that India must prioritize its own energy security and economic development. Indian External Affairs Minister Dr. S. Jaishankar has repeatedly said that India cannot be expected to pay the price for conflicts it did not create, and has emphasized that India imports oil from wherever it gets the best deal.
India argues that it is unfairly targeted, especially considering that several European nations continued buying Russian gas well into the war, even after promising to phase it out. Moreover, India maintains that it is not violating any international law, as there are no United Nations sanctions that prohibit such trade.
India-Russia Energy Ties: A Longstanding Relationship
India’s relationship with Russia in the energy sector is decades-old, and goes far beyond mere commercial interests. Russia has been a reliable supplier of oil, gas, and defense equipment to India since the Cold War era. Following the imposition of Western sanctions in 2022, Russia began offering steep discounts on crude oil, prompting countries like India and China to snap up the opportunity.
According to energy market research firm Vortexa, Russia became India’s largest crude oil supplier in 2023, surpassing traditional suppliers like Iraq and Saudi Arabia. Indian refineries reconfigured their operations to handle Russian Urals crude, which is heavier and has different refining requirements.
The deals have saved India billions of dollars in import costs, a crucial factor for a developing country grappling with high inflation and a widening current account deficit.
US-India Strategic Relations at a Crossroads
The tensions over oil come at a sensitive time in US-India relations, which have otherwise seen remarkable growth over the past two decades. From defense cooperation under the Quad Alliance (US, India, Japan, and Australia) to joint initiatives in technology, space, and clean energy, the two countries have expanded their partnership across a wide array of sectors.
However, India’s neutral stance on the Ukraine conflict, refusal to directly condemn Russia, and continued engagement in trade with Moscow are increasingly seen as policy divergences by Washington.
Analysts believe that the next phase of US-India engagement will depend on how India positions itself geopolitically, especially in relation to China and Russia. For the US, rallying allies around a common strategy on Russia remains a top priority, and India’s divergent approach complicates that mission.
Geopolitical Implications: A Broader Divide
The situation reflects a growing divide between Western powers and non-Western countries over how to respond to the Russia-Ukraine war. While the US and European Union have imposed sweeping sanctions, many countries in Asia, Africa, and Latin America have opted for neutrality or pragmatic engagement, citing economic self-interest.
India, like several others in the Global South, argues that the world cannot be divided into a binary of good and evil, and that countries must have the freedom to make decisions based on their national interests.
Conclusion: Navigating a Complex Global Landscape
The accusation by US Treasury Secretary Scott Besant that India has failed to act like a responsible global power adds new strain to a relationship that is crucial to both countries. While the US is disappointed with India’s decision to buy and process Russian oil, India remains firm in its resolve to act in its national interest.
The coming months may determine whether economic pragmatism or geopolitical alignment will shape the future of US-India relations. As India balances its historical ties with Russia and its growing partnership with the United States, it will need to navigate the diplomatic tightrope with increasing finesse.
What is certain, however, is that energy trade has become a new battleground in international diplomacy, and countries like India are caught in the crossfire of global expectations and domestic necessities.
