US Treasury Secretary Accuses India's Richest Families of Profiteering from Russian Oil Deals

US Treasury Secretary Scott Bessent claims some of India's richest families benefit from Russia deals, citing a surge in oil purchases and profits. Bessent reiterates plans to boost tariffs on India for buying sanctioned Russian oil. Reliance Industries, run by Asia's richest billionaire Mukesh Ambani, has been a buyer of Russian crude. Trump has threatened to raise levies on Indian exports to 50% for New Delhi's purchases of Russian oil.

US Treasury Secretary Scott Bessent has accused some of India's richest families of benefiting from the surge in oil purchases from Russia, citing a significant increase in profits. Bessent reiterated the administration's plans to boost tariffs on India for buying sanctioned Russian oil. The comments come amidst ongoing tensions between the US and India over Russian crude imports.

Before the 2022 invasion of Ukraine, less than 1% of India's oil came from Russia. However, post-invasion, Russia has become a significant supplier, with India now importing around 42% of its oil from the country [1]. Bessent claimed that India is "profiteering" by reselling the oil, generating $16 billion in excess profits [1].

Mukesh Ambani, Asia's richest billionaire, runs Reliance Industries Ltd., which has been among the buyers of Russian crude under long-term contracts [1]. The company has been a target of the US administration's criticism due to its ties to the government and the perceived profiteering from the Russian oil deals [1].

The US has threatened to raise tariffs on Indian exports to the US to 50%, with half of the penalty targeting New Delhi's purchases of Russian oil [1]. India has defended its right to buy oil from the cheapest source, calling the additional tariffs "unreasonable" [1]. The US administration has maintained that China, which imports more Russian oil than India, is not subject to the same tariffs due to its more diversified oil input [1].

Reliance Industries has been rated 'BBB+' by S&P Global Ratings, with the potential for an upgrade if the company operates at lower leverage and strengthens its non-energy revenue streams [2]. The rating agency noted that a higher rating could require a greater share of revenue from non-energy segments and conservative financial policy [2].

The article highlights the ongoing geopolitical tensions and the economic implications of the Russian oil deals for both India and the US. It remains to be seen how the US administration's tariffs will impact India's oil imports and the profitability of companies like Reliance Industries.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-19/bessent-says-india-s-richest-families-benefit-from-russia-deals
[2] https://www.business-standard.com/companies/news/potential-to-upgrade-rating-of-reliance-industries-says-s-p-global-ratings-125081901136_1.html