Trump aide uncovers India’s financial lifeline to Russia’s war against Ukraine
Photo: India finances Putin's war against Ukraine (Getty Images)
The US is increasing pressure on India over Russian oil imports. The new tariff is aimed at protecting American interests and reducing support for Russia's war, according to White House trade adviser Peter Navarro.
US imposing new tariffs on India for Russian oil
As Navarro noted, American consumers buy Indian goods. India uses these dollars to buy Russian oil at a discount. Russian oil is refined and resold around the world by Indian companies together with Russian partners. Russia, meanwhile, receives currency to finance its war in Ukraine.
According to him, while Russia continues to attack Ukraine with financial support from India, American and European taxpayers are forced to spend tens of billions of dollars on Ukraine's defense.
Meanwhile, India maintains high tariffs and trade barriers for American exports. More than 300,000 soldiers and civilians have died, NATO's eastern flank is becoming more vulnerable, and the West is paying for India's oil scheme, the White House adviser said.
Trade barriers and US deficit
According to him, India imposes some of the highest average tariffs in the world and a dense network of non-tariff barriers that hurt American workers and companies. As a result, the US has a huge trade deficit with India, nearly $50 billion annually. India uses these US dollars to buy Russian oil.
Before Russia invaded Ukraine in February 2022, Russian oil accounted for less than 1% of Indian imports. Since then, daily deliveries have risen to more than 1.5 million barrels — more than 30% of total imports.
Indian oil industry profits
Navarro stated that the increase in Russian oil imports is not related to India's domestic needs. The main incentive is the profits of large oil companies. Refineries have turned India into a center for processing cheap Russian oil.
Companies buy oil at a significant discount, refine it, and export the fuel to Europe, Africa, and Asia. This protects India from sanctions control under the pretext of neutrality.
Impact on global economy and war
India exports more than a million barrels of petroleum products per day, which is more than half of the oil imported from Russia. The revenues go to politically connected energy oligarchs and then to Putin's military budget.
India's dependence on Russian oil undermines the global community's efforts to isolate Putin's war economy. In effect, India is becoming a global refinery for Russian oil, turning banned raw materials into high-profit exports and providing Moscow with much-needed dollars, the White House adviser added.
Military supplies and US policy
India is heavily dependent on Russian weapons. Russia supplied approximately 36% of all Indian arms purchases in 2020-2024. The US, France, and Israel are gradually supplying India with weapons, but the deals are often accompanied by conditions for technology transfer and the construction of factories in India.
The article says this negates any benefits from reducing America's trade deficit and also creates the risk of transferring advanced US military capabilities to India, which is now playing both Russia and China.
Navarro said that the Biden administration has largely turned a blind eye to this strategic and geopolitical folly. The Trump administration has begun to address the issue. A recent presidential decree imposes a 25% national security tariff on Indian goods in response to Russian oil imports. This tariff is in addition to the existing 25% reciprocal tariff.
The trade adviser says that this two-pronged policy will hit India where it hurts — access to US markets — while cutting off financial support to Russia. If India wants to be a strategic partner of the US, it needs to start acting like one, he adds.
After the start of the Russian invasion of Ukraine, India sharply increased trade with Russia, in particular by purchasing its oil, which generates revenue for the Kremlin's military machine.
