Refining and Reselling Russian Crude Oil
"Serious Cracks in Efforts to Isolate Putin"
Peter Navarro, White House Trade and Manufacturing Advisor known as the architect of Donald Trump's tariff policies, has criticized India's purchase of Russian crude oil as opportunistic.
In an op-ed for the Financial Times (FT) published on the 17th (local time), Navarro pointed out, "When American consumers buy Indian products, India uses those dollars to purchase discounted Russian crude oil."
He stated, "While Russia continues its assault on Ukraine backed by India's financial support, American (and European) taxpayers are forced to spend tens of billions of additional dollars to defend Ukraine. At the same time, India continues to keep its market closed to American imports through high tariffs and trade barriers."
Navarro noted that India's imports of Russian crude oil have surged dramatically since Russia's invasion of Ukraine. According to him, before February 2022, Russian crude accounted for less than 1% of India's total oil imports. However, after the war began, daily imports soared to over 1.5 million barrels, exceeding 30% of India's total oil imports.
He emphasized, "Refining companies have turned India into a massive refining hub for discounted Russian crude." Navarro argued that the surge in Russian oil imports is not due to domestic consumption in India, but rather because of India's major oil conglomerates. He pointed out that these companies purchase Russian oil at discounted prices, refine it, and then export it to Europe, Africa, and Asia, all while claiming neutrality and thus avoiding sanctions.
He continued, "India exports more than 1 million barrels of refined petroleum products per day, which amounts to more than half the volume of crude oil it imports from Russia." He added, "The profits flow to energy tycoons closely tied to Indian political circles, and ultimately, back into Vladimir Putin's war chest."
Navarro stressed, "India's reliance on Russian crude oil is not only opportunistic but also seriously undermines the international community's efforts to isolate Putin's war economy."
He also mentioned India's high dependence on Russian weaponry. According to Navarro, about 36% of India's total arms imports between 2020 and 2024 came from Russia. While India is diversifying its arms procurement sources to include the United States and others, Navarro criticized India for demanding sensitive technology transfers and local factory establishment as conditions.
Recently, President Trump criticized India's imports of Russian crude oil and imposed an additional 25% tariff on top of the existing 25% reciprocal tariff. Navarro stated, "This move is intended to target India's access to the U.S. market while simultaneously cutting off Russia's war funding." He added, "If India wants to be treated as a strategic partner of the United States, it must first demonstrate actions worthy of that status."
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