Bessent said Indian refinery purchases of Russian oil have “collapsed” due to the tariffs
New Delhi: US treasury secretary Scott Bessent has said there is a “path” to remove the 25 per cent tariffs imposed on India over its purchases of Russian oil, noting that such imports by Indian refineries have sharply declined.
The remarks come amid strained bilateral ties after US President Donald Trump imposed a total of 50 per cent tariffs on India, including a 25 per cent levy linked to New Delhi’s procurement of Russian crude.
Speaking in an interview with Politico, Bessent on Friday described the sanctions as a “success.” “We put 25 per cent tariffs on India for buying Russian oil. And the Indian purchases by their refineries of Russian oil have collapsed. So that is a success,” he said, adding that while the tariffs remain in place, there was scope for their removal. “I would imagine that there is a path to take them off,” he said.
Bessent also criticised European countries for not imposing similar tariffs on India, accusing them of prioritising trade negotiations. “Our virtue-signalling European allies refused to do it because they wanted to sign this big trade deal with India,” he said.
He alleged that India significantly increased imports of discounted Russian oil after Moscow’s invasion of Ukraine. “Before the Ukraine invasion, about 2 to 3 per cent of the oil processed in Indian refineries came from Russia. That share rose into the high teens — 17, 18, 19 per cent — leading to huge profits for refiners,” he said.
Bessent further accused Europe of indirectly financing Russia’s war effort by purchasing refined petroleum products from Indian refineries using Russian crude. “In the ultimate act of irony and stupidity, guess who was buying the refined products from Indian refineries made from Russian oil? The Europeans,” he said. When asked if he had called Europeans “stupid,” Mr. Bessent clarified, “I said there was an act of stupidity.”
India and the European Union are expected to announce the conclusion of negotiations on a Free Trade Agreement soon.
New Delhi has rejected the US action, describing the tariffs as “unfair, unjustified and unreasonable,” and has maintained that its energy procurement decisions are guided by national interest.
According to the Centre for Research on Energy and Clean Air, India slipped to third place among buyers of Russian fossil fuels in December after Reliance Industries and state-owned refiners significantly cut crude oil imports from Russia.
