White House Trade Advisor Peter Navarro has made some bombshell claims against India in an opinion piece that he wrote for The Financial Times, published on Monday. Navarro claimed that before Russia’s invasion of Ukraine in February 2022, Russian oil was less than 1% of India’s crude imports. Since then, imports have risen sharply to over 1.5 million barrels a day, making up more than 30% of India’s total oil purchases.
This surge, he states, is not because India needs more oil for domestic use. Instead, Navaro says that “what really drives this trade is profiteering by India’s Big Oil lobby.” He claims that these refiners buy Russian crude at a heavy discount, process it, and then export fuels to Europe, Africa, and Asia.
The WH Trade Advisor says that India has now become a major refining hub for Russian oil, while at the same time claiming neutrality to avoid “sanctions scrutiny”. He goes on to say that the scale of this trade is huge with India exporting over 1 million barrels of refined products every day. This, Navarro claims, is more than half the amount of crude it imports from Russia.
Let’s look at some of the other claims made by Navarro against India:
Claim no. 1: ‘India acting as global clearinghouse for Russian oil’
He goes on to state that the profits from this business go to powerful Indian energy companies, and, as critics argue, also help fund Russia’s war. “The proceeds flow to India’s politically connected energy titans, and in turn, into Vladimir Putin’s war chest,” Navarro states.
He further adds that India’s dependence on Russian oil is “opportunistic” and weakens international efforts to isolate Putin’s “war economy”. In effect, Navarro says that India acts like a “global clearinghouse” for Russian oil, turning banned crude into valuable exports and giving Russia the money it needs.
Claim no. 2: ‘India keeps slamming the door on American exports’
Navarro argues that while the US and Europe spend “tens of billions” to support Ukraine’s defence, India indirectly helps Russia by buying large amounts of discounted Russian oil. He says this forces American (and European) taxpayers to bear the costs of defending Ukraine, while India benefits from cheap crude.
“More than 300,000 soldiers and civilians have been killed, while Nato’s eastern flank grows more exposed and the west foots the bill for India’s oil laundering,” Navarro said.
Claim no. 3: ‘India demands US companies to transfer sensitive military tech’
Between 2020 and 2024, about 36% of India’s total arms imports came from Russia, Navarro claims. Though India has bought weapons from the US, France, and Israel, Navarro says that India often demands sensitive US technology transfers and local production, which he argued risks America’s military edge. “That blunts any benefit to reducing America’s trade balance while it also risks transferring cutting-edge US military capabilities to an India now cozying up to both Russia and China,” Navarro writes.
Navarro criticises Biden administration for ‘looking the other way’
Navarro, in his write-up, slams the Biden administration for “looking the other way” on India’s oil and defence ties with Russia.
He says that the Trump administration has taken action, with a new executive order imposing a 25% national security tariff on Indian goods. This comes on top of an existing 25% reciprocal tariff that is already in place.
Navarro’s Message to India:
Navarro conclude the article by saying that the twin tariffs are meant to cut India’s financial support to Russia and reduce its access to US markets. He added that if India wants to be seen as a “strategic partner” of the US, it must change its behaviour.