The United States has levelled sharp criticism at India’s private refiners, accusing them of profiteering from Russian crude oil by reselling refined fuels to Europe and other regions.
US Treasury Secretary Scott Bessent said on Tuesday that Indian refiners were engaging in what he described as “arbitrage” — buying discounted Russian oil, refining it, and selling the products at higher prices in markets that have sanctioned Moscow.
“They are just profiteering. They are reselling,” Bessent told the reporters. “They’ve made $16 billion in excess profits, some of the richest families in India.”
The criticism has been directed particularly at Reliance Industries and Nayara Energy, which together account for a major share of India’s refined fuel exports.
According to the data, the two companies exported $60 billion worth of petroleum products in the 2024-25 financial year, including $15 billion to the European Union in just the first half of this year.
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Reliance, led by Mukesh Ambani, signed a 10-year deal in December 2024 with Russia’s Rosneft to import up to 500,000 barrels per day, valued at about $12-13 billion annually.
Nayara Energy, which is nearly half-owned by Rosneft, has also stepped up its reliance on Russian supplies. By 2025, 72% of its crude purchases came from Russia, compared with 27% in 2022.
Exports from the two companies are significant. In the first half of 2025, Nayara exported nearly 3 million metric tonnes of fuel, or about 30% of its output, with buyers including Vitol, Aramco Trading, Shell, and bp.
Reliance shipped more than 21 million tonnes during the same period, supplying firms such as bp, ExxonMobil, Glencore, Vitol, and Trafigura.
India’s imports of Russian crude have soared since Moscow invaded Ukraine in February 2022. Before the war, India bought only 68,000 barrels per day. That surged to a peak of 2.15 million barrels per day in May 2023, before easing to 1.78 million barrels per day in July 2025. Russia now supplies about 36% of India’s oil needs, compared with 0.2% before the conflict.
While private refiners focus on exports, state-run firms, including Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) have primarily used Russian oil for domestic demand.
Other media houses reported that IOC and BPCL have resumed purchasing Russia’s Urals crude for September and October delivery after discounts widened again, having paused orders when price advantages narrowed in July.
The US pressure comes after President Donald Trump imposed an additional 25% tariff on Indian exports to America earlier this month in response to New Delhi’s continued purchases of Russian crude.
Trump has also threatened “secondary tariffs” on buyers of Russian oil, with India seen as the primary target. China, despite being the second-largest importer of Russian oil, has not faced such measures.
Bessent suggested that Beijing’s imports were viewed differently because it had long been a major buyer of Russian oil, while India significantly increased its purchases only after 2022.
However, some energy analysts argue that India’s role has been more complex. Bob McNally, president of Rapidan Energy and a former White House advisor, told CNBC that Washington initially encouraged New Delhi to continue buying Russian crude in 2022.
“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,” McNally said.
Commerce Ministry figures show the scale of India’s refined fuel exports. Petroleum products accounted for $97.47 billion in FY 2022-23, $84.16 billion in FY 2023-24, and $63.35 billion in FY 2024-25.
The Netherlands, the UAE, and Singapore have remained top destinations, along with European and West African buyers.
With US officials openly accusing Indian refiners of profiteering, analysts say concerns are mounting over whether Washington could impose direct restrictions. They warn that such moves could strain ties with New Delhi at a time of heightened global energy uncertainty.
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