India‘s Oil Minister, Hardeep Singh Puri, has categorically denied allegations that the country is profiteering from Russian oil imports.
Puri’s statement comes amid heightened tensions with the US, which has imposed tariffs on Indian exports to discourage crude buying from Russia.
“Some critics allege that India has become a ‘laundromat’ for Russian oil. Nothing could be further from the truth,” Puri emphasized in an editorial.
Puri highlighted that India’s oil purchases from Russia have stabilized markets and prevented prices from soaring to $200 a barrel.
He attributed the discounts on Russian oil to the G-7/European Union price cap system, designed to limit Russia’s revenue while maintaining oil flow. “Russian oil has never been sanctioned like Iranian or Venezuelan crude,” Puri clarified.
The US has accused India of profiteering by importing Russian oil at lower prices and reselling refined fuel at higher rates. White House trade adviser Peter Navarro claimed Indian purchases were funding Moscow’s war in Ukraine, branding India the “maharaja of tariffs.”
However, Puri countered that every Indian oil transaction is conducted through “legal shipping and insurance, compliant traders, and audited channels.” He asserted that India has not broken any rules and has instead played a crucial role in stabilizing global oil markets.
India has emerged as the largest buyer of Russian seaborne oil, capitalizing on discounts offered by Russia after European countries and the US imposed sanctions following the Ukraine invasion.
Puri emphasized the significance of Russia’s oil supply, noting that the world’s second-largest producer accounts for nearly 10% of global oil. “The larger truth is this – there is no substitute for the world’s second-largest producer supplying nearly 10% of global oil,” he added.
The controversy surrounding India’s Russian oil imports has strained relations with the US, with President Donald Trump imposing tariffs on Indian exports.
Puri’s comments coincide with Prime Minister Narendra Modi’s meeting with Russian President Vladimir Putin in China at a regional summit.
The US allegations have sparked a debate on India’s role in the global energy market and its relations with Russia and the West.