New Delhi/Washington : Former White House trade adviser Peter Navarro alleged that India has given Russia a financial lifeline by purchasing crude oil. However, Indian government sources rejected his claims, calling them misleading and based on a flawed understanding of the global oil supply chain.
Navarro wrote on X that India uses American dollars to buy discounted Russian crude, while restricting US exports through high tariffs. He claimed this trade indirectly supports President Vladimir Putin’s war machine. Yet, the facts paint a very different picture.
Government officials explained that India buys Russian oil through traders in third countries, settling payments in currencies like the UAE dirham—not in US dollars. They stressed that India has never violated global norms. The G7 and EU themselves created an oil price-cap mechanism to keep Russian crude flowing while avoiding a global price shock.
India’s role, in fact, stabilised the market. When Brent crude spiked to $137 per barrel in March 2022, India’s continued purchases prevented prices from crossing $200. US Treasury Secretary Janet Yellen, Ambassador Eric Garcetti, and diplomat Geoffrey Pyatt all acknowledged that India’s oil imports helped keep prices in check, benefiting Western economies too.
Contrary to Navarro’s narrative, India did not profit at the expense of global consumers. Public oil companies even absorbed heavy losses of up to ₹10 per litre on diesel in 2022, while the government reduced taxes to protect citizens. Officials highlighted that Indian refiners process crude into fuel mainly for domestic use. Europe itself relied on Indian diesel and jet fuel after banning direct imports of Russian crude.
Navarro also accused India of running a large trade deficit with the US while using “American dollars” to bankroll Russia. Sources dismissed this, noting that the US runs far bigger deficits with China, the EU, and Mexico. At the same time, India buys billions of dollars’ worth of US aircraft, LNG, defence equipment, and technology.
Officials stressed that India’s actions were transparent and aligned with international rules. They argued that without India’s purchases, global crude prices would have skyrocketed, worsening inflation worldwide. Far from funding Russia’s war, India acted as a stabiliser in turbulent times, protecting both its citizens and global markets.
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