New Delhi: India has pushed back strongly against allegations made by United States trade adviser Peter Navarro, who accused New Delhi of bankrolling Moscow’s war effort through purchases of Russian crude oil.
In a detailed response to Navarro’s recent social media thread, official sources told the Sunday Guardian that his assertions reflected “an over simplistic and incorrect understanding” of global oil markets.
They stressed that India’s crude imports remain within international norms, including the G7 and European Union price cap mechanism, and have been crucial in keeping global energy prices stable since the outbreak of the Russia–Ukraine conflict in 2022.
Navarro, now serving as senior counselor for trade and manufacturing in the Trump administration, alleged that Indian refiners had become a conduit for Russian oil exports and accused New Delhi of using American trade dollars to fund discounted crude purchases. He also charged India with imposing steep tariffs on American goods while benefiting from access to the U.S. market.
Indian officials while rejecting these claims, told the Sunday Guardian that Russian crude has never been sanctioned by Washington or Brussels, unlike oil from Iran or Venezuela. They pointed out that India’s transactions are settled through currencies such as the UAE dirham rather than the U.S. dollar, and that the majority of refined petroleum products from imported crude are consumed domestically. They also cited steps taken in 2022 to prevent profiteering, including export taxes and requirements that private refiners maintain minimum domestic supply.
Officials emphasised that India’s purchases of Russian oil helped prevent global crude prices from spiralling to over 200 dollars a barrel, which would have triggered inflationary shocks worldwide. They recalled that U.S. officials including Treasury Secretary Janet Yellen and Ambassador Eric Garcetti had earlier acknowledged India’s stabilising role in global energy markets.
In the aftermath of the Russia-Ukraine war, India was encouraged by the West to buy Russian crude, as removing the second largest producer with 10% of global production from the international market would have resulted in crude going to USD 200/barrel.
Responding to Navarro’s broader criticism on trade, an official source told this newspaper that America’s deficit with India is small compared to its gaps with China, the European Union and Mexico, while underlining that New Delhi buys billions of dollars’ worth of U.S. aircraft, liquefied natural gas, defence equipment and technology. They dismissed suggestions of “strategic freeloading,” pointing instead to India’s investments in joint defence production, including the co-manufacture of jet engines with General Electric, and its active military role in the Indo-Pacific through the Quad partnership. Official sources reiterated that India has consistently called for peace and diplomacy at the United Nations and that demanding it sanction Russia while Europe continues to buy Russian gas and the United States still imports Russian uranium amounts to hypocrisy.
