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Ambanis Caught In Geopolitical Crossfire
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Good Morning. The US treasury secretary Scott Bessent launched yet another salvo at India’s Russian oil purchases, this time hinting at the Ambanis. Bessent accused India of “profiteering” from reselling Russian crude in other forms and called it “unacceptable”. What’s the signalling behind Bessent’s diatribe?
In other news, despite US threats, Russia wants to continue to supply oil to India. Meanwhile, the Lok Sabha passes bill to ban online gaming.
THE TAKE
Ambanis Caught In Crossfire As US Continues To Pressure India On Oil
US treasury secretary Scott Bessent on Tuesday accused India of profiteering from its increased purchases of Russian oil during the war in Ukraine, saying the US viewed it as “unacceptable”.
Speaking to CNBC’s Squawk Box on Tuesday, Bessent noted that Russian oil now makes up 42% of India's total oil purchases — a sharp jump from under 1% before the war — and contrasted with longtime buyer China, whose buys saw a modest jump from 16% to 13%.
"India is just profiteering. They are reselling," Bessent said. "What I would call Indian arbitrage — buying cheap Russian oil, reselling it as product has just sprung up during the war — which is unacceptable.” He added that some of the richest families in India have made as much as $16 billion in excess profits.
This follows trade advisor Peter Navarro's comment that India is 'a global clearing house for Russian crude' and that the proceeds flow to India's politically connected energy titans, into Russian president Vladimir Putin’s war chest.
Reliance In The Spotlight
First, while the global oil trade might be somewhat murky — given how, for example, sanctioned oil tends to move around the world — oil-to-chemicals major Reliance Industries is one of the most visible and publicly traded companies in India.
Second, exporting diesel or jet fuel from imported crude has been its strategy since its first refinery was set up in Jamnagar on the western coast of India 25 years ago.
The reason why the refinery was set up on the coast — unlike refineries owned by public sector giants like Indian Oil Corporation, which are largely inland — was precisely to import crude and export product.
Over time, Reliance, which controls 25% of India’s refining capacity, has helped cut India’s dependence on petroleum product imports, like petrol or diesel as have like other refining majors like Indian Oil and Hindustan Petroleum.
India still continues to import over 80% of its crude requirements, but the refining and value addition, for domestic consumption and exports, happen on Indian soil.
Reliance’s profits for all its businesses over the last three years — including oil to chemicals, telecom and retail — roughly add up to around $25 billion.
So the $16 billion figure that Bessent mentioned either might be an accurate depiction of Reliance, or might refer to the profits of other refining companies as well.
US Is A Different Ballgame
But the details do not matter so much.
Because Bessent has clearly taken aim at the Ambanis, and thus a businessperson seen as close to the government.
In doing so, maybe he is equating them to Russian oligarchs, typically very rich businessmen close to the Kremlin, whose initial riches came from the privatisation of state-owned enterprises in Russia in the early to mid 1990s under then president Boris Yeltsin.
Whatever Bessent’s intent, this specific attack does signal a further deterioration in US-India relations, at least at this point.
It is strange that Bessent — who has managed money for over 40 years and has worked with the Soros Fund Management as chief investment officer until 10 years ago — would highlight profits made by Reliance’s owners as unacceptable.
Attempting to squeeze logic from the battery of statements we have seen in recent days might be futile, but it is evident that there is a continuing problem — the friction between India’s Prime Minister Narendra Modi and US President Donald Trump, the reasons for which may go back to the period just before Trump got elected.
As various foreign affairs experts in the know have told us, this has to be resolved at the top.
While we await that, the Ambanis have a new problem to grapple with.
As many in business and politics are realising, you can get many things done in India, but facing the might of the United States is a different ballgame altogether.
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CORE NUMBER
2%
This is how much India's eight key infrastructure sectors grew just in 2025, sharply down from 6.3% a year ago, according to the Ministry of Commerce and Industry.
Why it matters: The core sector — 40% of the Index of Industrial Production — signals broader industrial and economic momentum.
Driving the slowdown:
Output slipped from 2.2% in June.
Contractions in coal, crude oil, natural gas, and refinery products weighed heavily.
By the numbers (YoY July 2025):
Coal: decline by 12.3%
Crude oil: declined by 1.3%
Natural gas: declined by 3.2%
Refinery products: declined by 1.0%
Fertilisers: increased by 2.0%
Steel: increased by 12.8%
Cement: increased by 11.7%
Electricity: increased by 0.5%
FROM THE PERIPHERY
Russia-India Energy Ties
Russia on Wednesday said it will keep supplying oil to India despite US warnings and expects India-Russia ties to withstand Trump’s tariffs, while also pushing for early trilateral talks with China, Reuters reported. Russia slammed US sanctions on India for purchasing Russian crude, calling them “unjustified” and proof of double standards, as per The Indian Express.
Critical Moment: Russian deputy chief of mission Roman Babushkin said energy cooperation with India would continue despite “external pressure,” with mechanisms in place to sustain supplies. He added that if Indian goods faced barriers in the US, they could head to Russia instead.
Flashpoint: Meanwhile, Indian Oil and Bharat Petroleum have resumed Russian crude purchases for September-October after wider discounts, Reuters said in another report. They paused in July amid US criticism and Trump’s threat of a 25% levy on Indian goods.
No More Online Gaming?
Union minister Ashwini Vaishnaw introduced ‘The Promotion and Regulation of Online Gaming Bill, 2025’, which the Lok Sabha passed by a voice vote. It seeks to ban all online games with a monetary component, regardless of whether they are skill or chance-based. Officials say that these games cause financial distress and endanger people’s mental health.
The Scoop: According to the Bill, anyone who offers online money gaming services could face imprisonment of up to three years or a fine of Rs. 1 crore or both. The Bill also criminalises advertisers of such services, as well as banks and financial institutions that facilitate transactions. But, it doesn’t seek to punish players — it sees them as victims instead.
Turning Point: But the online gaming industry disagrees. In a letter to Home Minister Amit Shah, representative bodies said that this bill would kill two lakh jobs and could push people toward offshore gambling websites and unregulated operators.
Apple Increases Manufacturing in India
Apple Inc. will step up manufacturing in India–sources told Bloomberg that it will move assembly of all forthcoming iPhone 17 models to five Indian factories. Two of these are already active: the Tata Group’s plant at Hosur in Tamil Nadu and Foxconn’s plant near the airport in Bengaluru.
The Backstory: Apple’s move is part of the company’s larger shift away from China to protect against potential tariff disruptions. In fact, in Q2 2025, India became the largest supplier of iPhones to the US. But India is still largely a final-stop assembly point for Apple.
Critical Moment: US President Trump disapproves of Apple’s foreign expansion and wants the company to manufacture locally. In early August, Apple CEO Tim Cook gifted Trump a custom-made silicon glass case. Though Apple will continue to manufacture abroad, the company did announce a $600 billion investment in the US, and said that it will expand US-based rare-earth processing and magnet manufacturing and glass production.
DoT Asks Trai To Regulate Telemarketers for Spam
The Department of Telecommunications has again asked the Telecom Regulatory Authority of India (Trai) to place restrictions on telemarketers for sending spam to consumers. Right now, the onus falls on telecom operators like Airtel, Jio, and BSNL, who face TRAI fines for spam messages transmitted via their networks.
The Backstory: Industry data says that each day, marketers send 1.5 to 1.7 billion commercial messages, which adds up to 55 billion each month. Previously, telecom operators have paid Rs 141 crore for failing to curb spam.
Flashpoint: Operators have challenged these penalties in the telecoms tribunal, saying that they shouldn’t be held responsible for the actions of telemarketers.
PODCAST
Markets Rise for the 5th Day on Easing Tariff Fears
On Episode 659 of The Core Report, financial journalist Govindraj Ethiraj talks to Anand Kulkarni, Director at Crisil Ratings as well as Ananay Jain, Partner at Grant Thornton Bharat.
Markets rise for the 5th day on easing tariff fears.
Government initiates laws to ban real money gaming
Why are telecom companies raising prices?
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