Putin’s War Chest: Trump Aide’s Claim on India-Russia Oil Trade Sparks Controversy

Donald Trump’s senior adviser, Peter Navarro, has intensified criticism of India, alleging that its oil trade with Russia indirectly supports Vladimir Putin’s military campaign in Ukraine. His remarks coincided with the implementation of the Trump administration’s 50% tariffs on Indian imports, measures explicitly linked to India’s ongoing purchases of discounted Russian crude.

In a series of posts on X, Navarro framed the tariffs as more than a trade measure, describing them as a strategic attempt to sever what he called India’s financial lifeline to Moscow.

“This isn't just about India’s unfair trade — it's about cutting off the financial lifeline India has extended to Putin’s war machine,” Navarro wrote.

The “Oil Mathematics” Argument

Navarro outlined a sequence by which he claims India benefits from its trade relationship with the US to fund Russian oil purchases:

• American consumers buy Indian goods, incentivized by high US tariffs and export barriers.

• India channels the resulting dollar surplus into discounted Russian crude.

• Indian refiners, alongside what Navarro terms “silent Russian partners,” process and resell the refined fuels globally for profit, while Russia secures hard currency to fund the war.

Navarro asserted that India has become a “global refining hub and oil money laundromat for the Kremlin,” exporting over one million barrels of refined petroleum per day—more than half of its Russian crude imports.

Surge in Russian Oil Imports

Navarro noted that Russian oil previously accounted for less than 1% of India’s imports, but the figure has surged since the Ukraine conflict, which he described as “profit-driven, not demand-driven.” He also accused India of geopolitical inconsistency, highlighting its purchases of Russian weapons while simultaneously seeking US defense technology transfers.

Tariffs as a Strategic Measure

Defending the 50% tariffs, Navarro framed them as a dual response: 25% to address perceived trade imbalances and 25% for national security concerns.

“If India wants to be treated as a strategic partner of the US, it needs to act like one. The road to peace in Ukraine runs through New Delhi,” he said, contrasting Trump’s approach with what he described as President Biden’s leniency toward India’s Russian oil trade.