The United States has sharply stepped up its criticism of Indian refining companies, accusing them of “profiteering” from discounted Russian oil and reselling refined fuels to sanctioning countries in Europe for “excess profits”. Washington further warned that India could face additional restrictions if it continues to increase purchases of Russian crude.
US Treasury Secretary Scott Bessent said Indian refiners were making use of a favourable geopolitical situation and turning Russian oil into products that are “resold” in markets that have outlawed direct imports from Moscow. “They are just profiteering. They are reselling. They’ve made $16 billion in excess profits, some of the richest families in India,” Bessent stated.
The criticism is principally aimed at private energy firms Reliance Industries and Nayara Energy, which together account for a substantial share of India’s refined fuel exports. According to trade data, the two companies exported approximately $60 billion worth of petroleum products in FY2024–25, including $15 billion to the European Union in the first half of the year alone.
Reliance signed a long-term agreement with Russia’s Rosneft in December 2024 to import up to 500,000 barrels per day over a ten-year period, while Nayara, which is nearly half-owned by Rosneft, has raised its dependence on Russian crude to 72 per cent in 2025 from just 27 per cent in 2022. A significant portion of their refined output continues to be sold abroad.
Government data shows that India’s imports of Russian crude increased from 68,000 barrels per day prior to the Ukraine conflict to a peak of 2.15 million barrels per day in May 2023. Russia now meets more than 36 per cent of India’s oil requirements, compared with barely 0.2 per cent before the war.
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Public-sector refiners such as Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum have also increased Russian imports, although their output is largely directed towards domestic consumption. By contrast, private refiners play a major role in converting Russian crude into export-grade products for use in Europe and West Africa.
The mounting criticism follows US President Donald Trump’s decision earlier this month to impose an additional 25 per cent tariff on Indian exports to the United States in an effort to deter New Delhi from purchasing Russian oil. He has also threatened “secondary tariffs” on countries continuing to source crude from Moscow.
When asked why China, also a major buyer of Russian crude, has not faced similar restrictions, Bessent argued that Beijing’s long-standing trade with Moscow predated the Ukraine conflict, whereas India’s imports “dramatically increased” only after 2022.
Several analysts, however, point out that the US had initially encouraged India to buy Russian oil in order to stabilise global markets and support the price cap mechanism. “India played a key role in the price cap sanction mechanism designed by the U.S. and its European allies to ensure Russian oil still flowed while trying to crimp the revenue Moscow earned,” said Bob McNally, president of Rapidan Energy and a former White House adviser.
India exported $63.35 billion worth of refined petroleum products in FY2024–25, with the Netherlands, the UAE and Singapore among the top destinations. Analysts say Washington’s growing pressure reflects concern over Russian revenues, but risks creating friction with New Delhi at a sensitive juncture in bilateral ties.
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