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

India has firmly dismissed accusations from the United States that it is profiting from imports of Russian crude oil. In a column published in *The Hindu* on September 11, 2023, Indian Minister for Petroleum and Natural Gas, Hardeep Singh Puri, emphasized that these imports play a crucial role in stabilizing global oil prices.

Puri countered U.S. claims by stating, “India’s adherence to all international norms prevented a catastrophic $200 per barrel shock.” He criticized allegations that India operates as a “laundromat” for Russian oil, asserting that such claims are unfounded. The minister highlighted that Russian oil is not subject to the same sanctions as Iranian or Venezuelan crude and operates under a price cap established by the G-7 and the European Union.

The comments from the U.S. came after Peter Navarro, a senior counselor for trade and manufacturing under the Trump Administration, described India as a “laundromat for the Kremlin” during an interview on Fox News. He accused Indian refiners of purchasing cheap Russian oil and then selling the refined products at higher prices in Europe and Asia. Navarro also criticized Indian stakeholders, stating, “Brahmins are profiteering at the expense of the Indian people,” which he used to justify the recently implemented 50% tariff on Indian goods, 25% of which stems from India’s ongoing imports of Russian crude.

In response to these accusations, Puri reiterated that India has not violated any international laws concerning Russian oil. He noted the importance of Indian oil imports, stating, “The truth is that there is no substitute for the world’s second-largest producer supplying nearly 10% of global oil.” He emphasized that India’s actions have contributed to stabilizing markets and preventing oil prices from spiraling out of control.

These remarks come at a time when Indian Prime Minister Narendra Modi is attending a security summit in China, where he is meeting with Chinese President Xi Jinping and Russian President Vladimir Putin. The discussions are likely to include the implications of the ongoing geopolitical tensions and their impact on global energy markets.

India’s refiners are expected to increase their imports of Russian crude oil in September compared to August levels. This anticipated rise in imports is due to deepening discounts on Russian oil, driven by constraints in Russia’s refining capacity linked to recent Ukrainian drone strikes, according to traders who spoke with Reuters.

India’s position in the global oil market remains pivotal, as the country continues to navigate complex international relations while ensuring energy security for its population. The ongoing dialogue between major global players highlights the intricate balance of geopolitics and energy trade.