India's Richest Man Caught in US-India Trade Skirmish Over Russian Oil

Mukesh Ambani, India's richest man, is caught in a US-India trade skirmish over Russian oil purchases. Ambani's refining giant Reliance is the biggest single buyer of Russian oil in India, and his tycoon status has put him in the eye of the storm. The criticism is not just personal, but also affects the Indian government's policies that shield industries key to tycoons like Ambani.

Mukesh Ambani, India's richest man, is at the center of a US-India trade skirmish over Russian oil purchases. As President Donald Trump targets India's reliance on Russian crude, Ambani's refining giant Reliance has become the focal point of criticism. The US Treasury Secretary, Scott Bessent, accused India of "arbitrage," buying discounted Russian crude, refining it, and reselling the products to Europe and other regions that have sanctioned Moscow [1].

Reliance, led by Ambani, has signed a long-term deal with Russia’s Rosneft to import up to 500,000 barrels per day, worth around $12-13 billion annually, for 10 years. This deal has significantly increased Reliance's Russian crude dependence, contributing to the surge in India's Russian oil imports since the Ukraine war began [1]. By 2025, 72% of Nayara Energy's crude purchases came from Russia, compared to 27% in 2022, further highlighting the extent of India's Russian oil reliance [1].

The criticism from the US is not just about Reliance but also about the broader implications for India's energy policies. The US has accused India of making $16 billion in excess profits through this trade, which has raised questions about the sustainability of these policies and the potential for further restrictions from the US [1]. The US has already announced additional tariffs on Indian exports, including a 25% tariff aimed at punishing New Delhi for buying Russian oil [1].

The US pushback comes as India's Russian crude imports have surged. Before the war, India bought only 68,000 barrels per day of Russian oil, but this figure has risen to 1.78 million barrels per day in July 2025, with Russia now supplying about 36% of India’s oil needs [1]. This increase has significant implications for India's trade balance and geopolitical relations with both the US and Russia.

The US criticism is not without its complexities. Some energy experts argue that India's role in the price cap sanction mechanism designed by the US and its European allies was encouraged by Washington in 2022. However, the US's growing unease about the flow of Russian oil revenues has led to a more aggressive stance against India's reliance on Russian crude [1].

As the trade skirmish intensifies, questions are being raised about the potential impact on private refiners like Reliance and Nayara Energy. The US's moves risk unsettling relations with New Delhi and could lead to further restrictions on Indian exports. The Indian government, which has aligned with tycoons like Ambani in its nation-building priorities, will need to navigate this complex geopolitical landscape carefully.

References:
[1] https://www.indiatoday.in/business/story/us-targets-private-refiners-ril-nayara-ioc-india-import-russia-oil-tariff-2773938-2025-08-20
[2] https://www.bloomberg.com/news/newsletters/2025-08-21/ambani-gets-caught-in-us-india-trade-skirmish-over-russian-oil