New Delhi/Washington– After Peter Navarro, former Senior Counsellor for Trade and Manufacturing at the White House, alleged in an X post that India is providing a financial lifeline to Russian President Vladimir Putin’s war effort by purchasing discounted Russian crude, Indian government sources have firmly rejected these claims. According to officials, Navarro’s views are based on an oversimplified and inaccurate understanding of the global oil supply chain.
In a series of posts, Navarro claimed that India uses U.S. dollars to purchase Russian crude, while American consumers buy Indian goods. He also accused India of restricting U.S. exports through high tariffs and non-tariff barriers. However, government sources clarified that these allegations are far from the reality.
India’s crude oil purchases from Russia are legitimate, conducted through third-country traders, and settled in alternative currencies such as AED, not U.S. dollars. Furthermore, the recent surge in Russian oil imports was not driven by domestic demand or profiteering, but by India’s efforts to stabilize global oil prices. In fact, India’s action in buying Russian oil has prevented a massive spike in global oil prices, which could have reached $200 per barrel if Russia had been excluded from the market.
Navarro also claimed that Indian refiners were profiting from Russian oil, but this is inaccurate. The U.S., G7, and EU have imposed a price cap mechanism on Russian oil to ensure its continued flow while limiting war profiteering. India’s role in refining and distributing global oil has helped stabilize markets, particularly in Europe, where Russian crude has been replaced by Indian diesel and jet fuel.
Government sources also pointed out that the U.S. has never requested India to stop buying Russian oil. Instead, India’s actions have been aligned with global efforts to prevent oil price inflation, benefitting consumers worldwide, including in the U.S.
Contrary to Navarro’s claims, India’s $50 billion trade deficit with the U.S. is not unusual. The U.S. also runs trade deficits with China, the EU, and Mexico. Additionally, India imports billions of dollars in U.S. goods, including aircraft, LNG, and defense equipment, further demonstrating a balanced economic relationship. (Source: IANS)
