‘India’s Richest Families Benefited from Russian Oil’: US Treasury Secretary Bessent
KBS Sidhu 22 August 2025 https://www.moneylife.in/article/indias-richest-families-benefited-from-russian-oil-us-treasury-secretary-bessent/78041.html Both Reliance and Nayara Energy, the two largest private refiners benefiting from Russian crude, operate out of Gujarat, his home state. The opposition has long accused him of presiding over crony capitalism and maintaining an uncomfortably close relationship with the Ambani group.
Who Really Pockets India’s Russian-Oil Windfall?
Despite record discounts on crude imports, why are Indian consumers still paying near-record fuel prices while oil companies and governments reap massive gains?
KBS Sidhu https://kbssidhu.substack.com/p/who-really-pockets-indias-russian Private refiners such as Reliance and Nayara Energy have converted discounted Russian crude into an export bonanza. Petroleum product exports hit $60 billion in FY 2024–25, with $15 billion worth shipped to the EU alone, even as European buyers embargoed Russian oil. By refining discounted crude and selling high-margin products abroad, these refiners have prioritised exports over passing savings to domestic consumers.
In FY 2023–24, Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum posted combined profits of ₹86,000 crore, compared to just ₹3,400 crore the previous year. Indian Oil’s profit alone surged from ₹8,242 crore to ₹39,619 crore, a jump of 381%. Bharat Petroleum saw an unprecedented rise from ₹1,870 crore to ₹26,674 crore—a 1,326% increase—while Hindustan Petroleum swung from a loss of ₹8,974 crore to a profit of ₹14,694 crore.
Private refiners extracted even larger gains. Reliance Industries, importing the largest share of discounted Russian crude, recorded refining margins exceeding $12.5 per barrel, while Rosneft-backed Nayara Energy reported margins of $15.2 per barrel.