Former White House advisor Peter Navaro has made serious allegations against India for buying crude oil from Russia. It has been told Russia to pay money for the fight in Ukraine. India has strongly denied this.
Russian oil imports: US President Donald Trump has imposed an additional 25% tariff on India due to purchasing crude oil from Russia. The total tariff has increased to 50%. Even after US pressure, India is importing oil from Russia. With this, Trump and his administration people are making statements against India. It has been alleged that India is buying oil from Russia and giving it money for war against Ukraine. India has opposed these allegations. It is said that our energy trade is according to international rules. Buying Russian oil has helped to stabilize fuel prices in the world.
Former White House advisor Peter Navarro has said that since the commencement of Ukraine War, India has worked as a “financial lifeline” for Russia by purchasing a large amount of crude oil. Indian officials and industry sources refuting the allegation, saying that there are no comprehensive restrictions on Russian oil. The G-7 and the European Union have designed their value-limit system in such a way that the flow of Russian crude oil remained below the market rates.
Learn India in 9 points on the allegations of Peter Navaro
1- Navaro has said that Trump has not imposed 50% tariff on India just to combat India’s unfair trade practices. Their purpose is to stop procurement of Russian oil by India. This will not give Putin money to fight war.
On this, India says that Russian oil imports have stabilized global markets rather than funding Moscow’s war machine. People like Peter Navaro ignore the price limit of 18 rounds of G7/EU. These Russian crude oil flows were created to keep the flow below market rates.
Russia produces about 10% of the global demand. Therefore, due to a sudden obstruction in the purchase of oil by India, oil prices could go above $ 200 (Rs 17628) per barrel. This would harm consumers around the world. Instead, by continuing imports, India helped the prices stable and keep the markets balanced.
2- Navaro claims that American people buy Indian goods. At the same time, India prevents American exports with high tariffs and obstacles. India uses the dollars received from the US to buy Russian oil at a discounted rates.
India says that the purchase of crude oil from Russia is valid. This is according to global norms. Russia has not been given money in lieu of oil through US dollars. Payment is made using AED -like currencies through traders from third countries. Import G7/EU has been within the price limit structure.
After the Ukraine War, western countries encouraged these purchases to prevent oil prices from reaching $ 200 per barrel. This is the reason why Russian crude oil was never completely banned. Washington did not ask India to do so at any level. Now the sudden criticism seems to be associated with business talks more unsuccessful than the energy policy.
3- Navaro claims that Indian refineries purchase Russian crude oil at a cheaper price and refine and sell it in the international market. This is making them a big profit. At the same time, Russia is getting money for fighting in Ukraine.
On this, India says that its oil import from Russia is valid and transparent. It is different from restricted “black market” crude oils like Iran or Venezuela. Russian oil was never banned by the US/European Union/G7. Instead, it was placed under the price limit system to maintain global supply and prevent prices from rising.
If Washington really wanted to stop Russian crude oil, he could have directly banned it. The concerns of rising prices did not allow him to do so. India has avoided taking LNG and LPG from banned Russian projects. The European Union measures have made refineries like Naira Energy completely dependent on Russian crude oil.
4- Navaro claims that India imported very few oil from Russia before the Ukraine war. Now India is importing more than 30% of its need from Russia. This is more than 1.5 million barrels per day. This bounce is not related to India’s energy needs, but the result of profiteering. India is earning at the cost of bloodshed and destruction in Ukraine.
India says that we are buying oil from Russia for the energy security of our 1.4 billion citizens. Our aim is to stabilize global markets and not profiteering. After Brent crude reached $ 137 per barrel in March 2022, the government took steps to keep domestic fuel economical. Public sector oil companies suffered a huge loss of up to Rs 10 per liter on diesel. It is Rs 21000 crore between April 2022 to January 2023. Export taxes were levied to prevent unexpected benefits. Compulsory domestic supply rules ensured that the pumps should never be empty. The central and state governments cut taxes by Rs 10 per liter.
These steps reduced fuel prices in India, while fuel prices were rising worldwide. At a time when OPEC+ has drastically cut the production, India helped prevent crude oil from going above $ 200 per barrel by continuing imports from Russia.
5- Navaro claims that India’s powerful oil lobby has made the country a huge refining center for Kremlin and “Dhan Laundering Center”. Indian refiners buy Russian crude oil at concessional rates. It processes it and exports to Europe, Africa and Asia.
India says that it is refining and exporting hub and not the “laundromat” of Russian oil. India is the fourth largest refiner and exporter in the world with 23 refineries and decades of investment. India supply petroleum products to more than 150 countries, meeting domestic demand. India has not sold cheap Russian crude oil. It is processed in fuel with many other grades of global crude oil. Most are used in the country itself.
Export of processed products is part of the general global supply chain. After Europe banned Russian crude oil, he relied on Indian diesel and jet fuel to keep the markets stable. Refining margin and discounts are now normal. Allegations of “super profit” have been exaggerated by Indian refineries.
6- Navaro claims that India exports more than 10 lakh barrels per day. It is more than half of crude oil purchased from Russia. This advantage goes to the politically associated energy giants in India. Along with this, Putin gets money for fighting.
India believes that its processed petroleum exports have been running for a long time. It is valid. Russian is mainly inspired by domestic needs rather than earning profits from crude oil. Russia accounts for 30–35% of India’s total oil imports. About 70% of processed products are consumed in India only.
Exports have been roughly stable. Domestic demand has increased. The 2006 SEZ refinery of Reliance was established for exports. It is independent of Russia-Ukraine conflict. Approval was not given under the G7 Price-limit system to re-sell processed products made from Russian crude oil. Limited sanctions on this were imposed only under the 18th package of the European Union.
India’s overall petroleum exports remain stable. Exports to the European Union, mainly diesel and jet fuel, have increased marginally. It is led by Netherlands, France and Belgium.
7- Navaro claims that the US is giving weapons to Ukraine. At the same time, India is helping them financially by purchasing oil from Russia. India imposes the world’s highest tariff on American goods. This causes damage to American exporters. Trade deficit increases. India gets a chance to earn profits at the cost of the lives of Ukrainians.
On this, India has said that the argument of Navaro’s trade deficit is hollow. The US has a bigger loss with China, the European Union and Mexico. India’s loss of $ 50 billion is relatively small. India is an important buyer of American products from aircraft and LNG to defense equipment and advance technology. This reflects balanced and mutually beneficial trade relations rather than unilateral exploitation.
8- Navaro claims that India is still buying Russian weapons. He is pressurizing American companies to transfer sensitive military technology and establish production in India. This is “strategic freeing”.
India has said that we are not doing free. India is investing deeply in American strategic partnerships. From the co-production of GE Jet Engine and the purchase of MQ-9 drones to strengthening the quad and the Hind-Pacific defense cooperation, India has dedicated significant resources to bilateral and multilateral safety relations.
9- Navaro claims that unlike the Biden administration (ignored India’s actions) President Trump is directly imposing 50% tariffs. If India wants it to be considered as a true American strategic partner, then it will have to work accordingly. The path of peace in Ukraine goes through New Delhi.
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It is India’s attitude that it has consistently advocated peace and diplomacy in the United Nations. Has worked responsibly by keeping the oil markets stable within the global structure. The expectation that India will impose a ban on Russia, while Europe continues to buy Russian gas and the US is importing Russian uranium, hypocrisy. By maintaining oil supply, India prevented prices from rising. Help in protecting Western economies from deep crises. Making India a goat of sacrifice is propaganda rather than a solid policy.