Trump Adviser Accuses India of Supporting Kremlin’s Oil Trade

In a pointed critique of India’s foreign policy, White House trade adviser Peter Navarro has accused the country of serving as an “oil money laundromat for the Kremlin.” His comments follow a series of escalating tensions between the United States and India, particularly regarding India’s continued purchase of Russian oil amid the ongoing conflict in Ukraine.

Allegations of Strategic Freeloading

Navarro, who served as a senior counsellor for trade and manufacturing under the Trump administration, lambasted India for purchasing Russian weapons while simultaneously demanding American firms transfer sensitive military technologies to India. He characterized this behavior as “strategic freeloading,” suggesting that India is benefiting disproportionately from its relationship with the US.

In a sequence of social media posts, he stated, “If India, the world’s largest democracy, wants to be treated like a strategic partner of the US, it needs to act like one.” His remarks come shortly after the Trump administration imposed a 50 percent tariff on Indian goods, citing unfair trade practices and national security concerns.

Impact of Indian Oil Imports

Navarro claimed that India’s oil market has shifted dramatically since the start of the Ukraine conflict. He asserted that Indian refiners are buying cheap Russian crude oil, refining it, and exporting the finished products to markets in Europe, Africa, and Asia. “India now exports over 1 million barrels a day in refined petroleum—more than half the volume of Russian crude it imports,” he stated, emphasizing the financial implications for both nations.

According to Navarro, this arrangement not only enriches India’s politically connected energy sector but also inadvertently funds Vladimir Putin’s military efforts in Ukraine. He added that before the invasion, Russian oil constituted less than 1 percent of India’s total imports, a figure that has now surged to over 30 percent, translating to more than 1.5 million barrels daily.

“While the United States pays to arm Ukraine, India bankrolls Russia,” he contended. Navarro’s comments highlight a growing frustration within the US regarding India’s trade practices, particularly in light of the USD 50 billion trade deficit the US runs with India. He criticized India for benefiting from US consumers while maintaining high tariffs against American exports.

In response to Navarro’s statements, India has labeled the tariffs imposed by the US as “unjustified and unreasonable.” The Indian government maintains that it will take all necessary measures to protect its national interests and economic security.

As tensions mount, Navarro’s criticisms point to a broader debate about the shifting dynamics of international alliances and economic dependencies in the wake of the Ukraine conflict. He suggested that the Biden administration has largely overlooked these issues, while he believes Trump would take a more confrontational stance.

Democratic members of the House Foreign Affairs Committee have also weighed in, accusing Trump of unfairly targeting India for its Russian oil purchases while ignoring larger buyers like China. They argue that such tariffs could undermine the US-India relationship, stating, “Instead of imposing sanctions on China or others purchasing larger amounts of Russian oil, Trump’s singling out India with tariffs, hurting Americans and sabotaging the US-India relationship in the process.”

There has been no immediate official response from New Delhi regarding Navarro’s allegations. As the geopolitical landscape continues to evolve, the implications of these trade relationships and accusations may significantly impact future interactions between these key global players.