Navarro accuses India of being 'oil-money laundromat' for Russia

US President Donald Trump’s trade adviser Peter Navarro on Friday (August 28) renewed his criticism of India, alleging that New Delhi was using American trade dollars to fund Russia’s war in Ukraine.

Navarro also accused India of being an “oil-money laundromat for the Kremlin”, after earlier describing the Ukraine conflict as "Modi’s war".

Also Read: Who is Peter Navarro? Why is he angry with India, and rest of the world?

'Cutting off Putin’s lifeline'

In a post on X, Navarro said, “President Trump’s 50% tariffs on Indian imports are now in effect. 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.”

Explaining how the India-Russia oil mathematics works, he said, "American consumers buy Indian goods while India keeps out US exports through high tariffs and non-tariff barriers."

"India uses our dollars to buy discounted Russian crude," he added.

'Silent Russian partners'

Navarro said that Indian refiners, working with “silent Russian partners”, were making huge profits by refining Russian oil and selling it in international markets while “Russia pockets hard currency to fund its war on Ukraine”.

"Indian refiners, with their silent Russian partners, refine and flip the black-market oil for big profits on the international market – while Russia pockets hard currency to fund its war on Ukraine," he said.

Navarro noted that before Russia invaded Ukraine, Russian oil made up less than 1 per cent of India’s imports, stating that the present surge is driven by Indian profiteers.

"Today? Over 30% — more than 1.5 million barrels a day. This surge isn’t driven by domestic demand — it's driven by Indian profiteers and carries an added price of blood and devastation in Ukraine," he added.

Also Read: Peter Navarro slams India over Russian oil purchase, trade tariffs

India's 'big oil lobby'

Navarro further said that India’s "big oil lobby" has turned the largest democracy in the world into a massive refining hub and oil money laundromat for the Kremlin.

"Indian refiners buy cheap Russian oil, process it, and export fuels to Europe, Africa, and Asia — shielded from sanctions under the pretense of neutrality," he added.

Adding that India now exports over 1 million barrels a day in refined petroleum — more than half the volume of Russian crude it imports, he said the proceeds flow to India’s politically connected energy titans — and directly into Putin’s war chest.

'Strategic freeloading'

"While the United States pays to arm Ukraine, India bankrolls Russia even as it slaps some of the world’s highest tariffs on US goods, which in turn punishes American exporters," Navarro remarked.

He said that the US runs a USD 50-billion trade deficit with India and added that New Delhi is using “our dollars to buy Russian oil”.

"We run a $50-billion trade deficit with India — and they’re using our dollars to buy Russian oil. They make a killing and Ukrainians die," Navarro added.

He criticised India's continued purchase of Russian weapons, while demanding that US firms transfer sensitive military tech and build plants in India, calling it "strategic freeloading".

Also Read: Trump aide calls Ukraine ‘Modi’s war’, Democrats say ‘this isn’t about Ukraine’

Biden 'looked away'

Navarro added that while the Joe Biden administration largely looked the other way at this “madness”, Trump is confronting it.

"A 50% tariff — 25% for unfair trade and 25% for national security — is a direct response. If India, the world's largest democracy, wants to be treated like a strategic partner of the U.S., it needs to act like one," he noted, reiterating his earlier stance that "The road to peace in Ukraine runs through New Delhi."

Earlier, Navarro described the Russia-Ukraine conflict as “Modi’s war”, arguing that India’s oil purchases were helping finance Moscow’s aggression.

Although he lauded Prime Minister Narendra Modi as “a great leader” and India as “a mature democracy with intelligent people at the helm”, Navarro stressed that New Delhi’s dealings with Moscow undermined its claim of being a trusted US partner.