‘India Hasn’t Broken Rules, Stabilised Markets’: Puri Rejects Navarro’s ‘Laundromat’ Charge

Oil Minister Hardeep Singh Puri has rejected White House trade adviser Peter Navarro’s charge that India has become a “laundromat” for Russian oil, insisting that the country’s energy purchases are legal, transparent, and central to stabilising global markets. In a signed article for The Hindu, Puri broadened the debate by tying energy security to India’s larger economic story, stressing that resilience, reform, and rapid growth define the present moment.

Drawing on civilisational imagery, Puri wrote, “Indian civilisation has long believed that trial precedes triumph. Like the churning of the ocean, Samudra Manthan, where turbulence yielded nectar, our economic churns have always produced renewal. From the crisis of 1991 came liberalisation and from the COVID-19 pandemic came a digital surge. And, today, from the cacophony of doubters calling India a ‘dead economy’ emerges the fact-rich story of resilience: faster growth, stronger buffers, and broader opportunity.”

He highlighted that real GDP expanded 7.8 per cent in the first quarter of FY 2025-26, the strongest in five quarters, with Gross Value Added up 7.6 per cent across manufacturing, construction, and services. “India is now the world’s fourth-largest economy, and the fastest-growing major one, outpacing even the first and second largest, the United States and China,” he noted. On current trajectories, India is on course to overtake Germany to become the third-largest economy before the decade ends.

Navarro’s Allegations and Puri’s Response

The sharp response follows Navarro’s posts on X last week, in which he described the Russia-Ukraine war as “Modi’s war” and accused India of financing Moscow. “India’s big oil lobby has turned the world’s largest democracy into a massive refining hub and oil money laundromat for the Kremlin,” Navarro alleged, accompanying the posts with a picture of Prime Minister Narendra Modi in saffron robes.

Puri countered, “Every transaction has used legal shipping and insurance, compliant traders and audited channels. India has not broken rules. India has stabilised markets and kept global prices from spiralling.” He emphasised that unlike Iranian or Venezuelan crude, Russian oil is not sanctioned but falls under a G-7/EU price-cap regime intended to keep supply flowing. “Some critics allege that India has become a ‘laundromat’ for Russian oil. Nothing could be further from the truth. India has been the fourth-largest exporter of petroleum products for decades — long before the Ukraine conflict — and its refiners process a basket of crudes from across the globe,” he said.

Brokerage firm CLSA also recently warned that if India stopped importing Russian oil, crude prices could surge to USD 90–100 a barrel, stranding nearly 1 million barrels per day — about one per cent of global supply — and triggering higher inflation worldwide.

Puri On Shielding Citizens From Shock Pricing, Ensuring Energy Security

Puri pointed out that when global energy prices spiked after the Ukraine war, Indian households were shielded. “Oil PSUs absorbed losses of up to ₹10 per litre on diesel, the government cut central and State taxes, and export rules mandated that refiners selling petrol and diesel abroad must sell at least 50 per cent of petrol and 30 per cent of diesel in the domestic market. These measures, at considerable fiscal cost, ensured that not a single retail outlet ran dry and that Indian households saw stable prices,” he wrote.

He underscored India’s dual focus on hydrocarbons and clean transition. Ethanol blending, he said, has risen from 1.5 per cent in 2014 to 20 per cent today, saving over ₹1.25 lakh crore in foreign exchange while directly benefitting farmers. Over 300 compressed biogas plants are underway, and oil PSUs are advancing green hydrogen initiatives. With energy demand expected to double by 2047 and account for a quarter of incremental global demand, Puri stressed that India’s success is central to global energy stability.

‘The Scoreboard Is the Answer’: Puri Tells India’s Critics

Puri also linked energy security to broader development, noting that between 2013-14 and 2022-23, 24.82 crore people exited multidimensional poverty, aided by basic services, direct transfers, and digital infrastructure. He recalled how S&P Global recently upgraded India’s sovereign rating for the first time in 18 years, citing fiscal discipline and strong growth.

He concluded with a pointed message to critics: “The test of a great civilisation lies in its crucible moments. When doubted in the past, India responded with Green Revolutions, IT Revolutions, and the quiet dignity of millions lifting themselves through education and enterprise. Today’s moment is no different. India will keep its gaze steady, its reforms relentless, and its growth rapid, democratic, and inclusive — so that the benefits reach the most underserved. To the naysayers, the scoreboard is the answer.”