Three days after Washington imposed a steep 50 per cent tariff on Indian exports, White House trade adviser Peter Navarro renewed his criticism of India’s energy ties with Moscow. This time, he went further, calling New Delhi a “refinery profiteer” and a “laundromat for Russian oil.”
Navarro alleged that Indian refiners were helping Russia bypass Western restrictions by refining crude and re-exporting it, thereby funding Moscow’s war effort in Ukraine. He linked these accusations directly to the newly announced tariff regime, claiming the duties were imposed to “cut off the financial lifeline India has extended to Putin’s war machine.”
However, a closer look at the facts reveals that the narrative does not align with the documented realities of sanctions, pricing frameworks, and trade practices.
Was Russian Oil Ever Sanctioned?
No. Unlike Iranian or Venezuelan oil, Russian crude has not been subject to blanket sanctions by the United States, the EU, or the G7. Instead, Western nations adopted a price-cap mechanism in 2022, designed to keep Russian oil flowing while limiting Moscow’s revenues. The goal was threefold:
-
Prevent Russia from earning windfall profits
-
Keep global supply intact
-
Avoid inflationary shocks and a global recession
This meant that countries—including India—could legally import Russian oil as long as it was purchased below the cap.
Did India Comply With the Price-Cap Framework?
Yes. India’s oil purchases followed the guidelines of the G7–EU system. No sanctions were breached, and no international laws were violated. Payments were routed through non-dollar mechanisms—typically in currencies such as the UAE dirham—ensuring compliance with Western frameworks and avoiding secondary sanctions.
Navarro’s claim that India used its trade surplus with the United States to pay Russia is factually inaccurate. A trade surplus reflects export-import balances; it does not imply that dollar earnings were redirected to Moscow.
Did Washington Ever Ask India to Halt Russian Oil Purchases?
No. Since February 2022, the United States has never issued a public or diplomatic request for India to stop importing Russian crude. On the contrary, senior U.S. officials acknowledged India’s role in stabilising global energy flows.
-
Janet Yellen, U.S. Treasury Secretary, said Washington was “comfortable” with India’s purchases.
-
Eric Garcetti, U.S. Ambassador to India, noted they prevented a price spike.
-
Geoffrey Pyatt, U.S. diplomat, called India a “key stabiliser.”
Criticism only escalated after tariffs were announced in late August, suggesting a shift in political, not economic, reasoning.
.png)
The opinions posted here do not belong to 🔰www.indiansdaily.com. The author is solely responsible for the opinions.
As per the IT policy of the Central Government, insults against an individual, community, religion or country, defamatory and inflammatory remarks, obscene and vulgar language are punishable offenses. Legal action will be taken for such expressions of opinion.