India Defends Russian Oil Imports Amid U.S. Pressure, Slams "Laundromat" Allegations

India has firmly pushed back against growing pressure from the United States to reduce its crude oil imports from Russia, insisting that it has not violated any international rules and has, in fact, helped stabilise global energy markets.

Union Oil Minister Hardeep Singh Puri, writing in The Hindu on Monday, defended India’s oil trade with Russia, which has come under renewed criticism from U.S. officials. “India’s adherence to all international norms prevented a catastrophic \$200 per barrel shock,” Puri wrote. “Some critics allege that India has become a ‘laundromat’ for Russian oil. Nothing could be further from the truth.”

Puri stressed that India’s purchases are in line with the G7’s price-cap mechanism, designed to curb Moscow’s war revenue while ensuring the continued flow of oil. “India has stabilised markets and kept global prices from spiralling,” he said.

Amid renewed U.S. scrutiny, White House trade adviser Peter Navarro sparked controversy over the weekend by accusing India’s elites of profiteering from discounted Russian crude.

In an interview with Fox News, Navarro said, “Look, Prime Minister Narendra Modi is a great leader. But I don’t understand how he’s working with Putin and Xi Jinping while being the leader of the world’s largest democracy.”

He went on to claim: “You’ve got Brahmins profiteering at the expense of the Indian people. We need that to stop.” His remarks echoed earlier comments by U.S. Treasury Secretary Scott Bessent, who accused India’s wealthiest families of enabling the Kremlin’s war effort by acting as intermediaries in global oil markets.

Despite mounting criticism, India’s imports of Russian oil remain robust. According to data from energy analytics firm Kpler, Russia now accounts for 37% of India’s total crude purchases—up from almost negligible levels before the Ukraine war. This shift came as India capitalised on steep discounts, initially up to \$20 per barrel, after European buyers exited the Russian market.

Though the discounts have since narrowed due to tightening sanctions, Indian refiners like Reliance Industries and Rosneft-backed Nayara Energy are reportedly set to increase Russian oil purchases by 10–20% in September, despite a 50% Trump-era tariff on Indian goods. This would translate to an additional 150,000–300,000 barrels per day, according to a Reuters report dated 28 August 2025.

Puri maintained that, realistically, there is no viable alternative to Russian crude. “The truth is that there is no substitute for the world’s second-largest producer, supplying nearly 10% of global oil. Those pointing fingers ignore this fact,” he wrote.

Analysts believe India’s continued imports go beyond economics. In a note last week, CLSA analysts including Vikash Kumar Jain said India is unlikely to stop buying Russian oil unless there is a global ban. “This is now less an economic question and more about political autonomy—India’s right to make its own energy decisions,” the note stated.

As Washington escalates its rhetoric, India appears set to maintain its course, reinforcing its position that its energy decisions are grounded in national interest and global market stability—not external political pressure.