10% markup: Who’s really 'profiteering'? How US profits from selling weapons to Europe for Ukraine war

The United States has accused India of "profiteering" from Russian oil, even as Washington itself openly admits to making money by selling weapons to Europe, which are then resold to Ukraine at a 10% markup.Speaking to Fox News, US Treasury Secretary Scott Bessent acknowledged that the US supplies weapons to Europe, which in turn sells them to Ukraine with a 10% markup. “I think President Trump is very vigilant right now. We sell weapons to the Europeans, who then sell them to the Ukrainians. And President Trump takes a 10% markup on the weapons. So, perhaps, this 10% will cover the cost of air cover,” he said.Yet, in a separate interview with CNBC, Bessent criticised India for buying Russian oil and refining it into petroleum products that are exported further.

“They are just profiteering. They are reselling. This is what I would call the Indian arbitrage — buying cheap Russian oil, reselling it as product,” he said, claiming that Indian refiners have made $16 billion in excess profits and alleging that “some of the richest families in India” benefited from it.Secondary tariffs?The US has floated the idea of "secondary tariffs" against countries like India that continue importing Russian crude, though such measures have not been extended to China — despite Beijing being a major buyer of Russian energy.

According to Bessent, the Trump administration views China differently because it was a Russian customer long before the Ukraine conflict.Trump announced 25 per cent tariffs on Indian goods in July, even as there were hopes of an interim India-US trade deal that would have otherwise helped avoid elevated tariffs. A few days later, he imposed another 25 per cent tariff, taking the total to 50 per cent, citing India's continued imports of Russian oil.'First security guarantees, then Putin summit'Bessent’s remarks also came against the backdrop of high-level talks in Washington between US President Donald Trump, Ukraine’s Volodymyr Zelensky, and European leaders, where the focus was on creating a framework for security guarantees. “We want to have an understanding of the security guarantees architecture within seven to 10 days,” Zelensky said, stressing the need for clarity on which countries would step up at critical moments.India calls out 'double standards'Meanwhile, India has pushed back against Trump’s threat to “substantially” raise tariffs on Indian goods over its continued oil imports from Russia, calling the sanctions “unjustified and unreasonable.”In a strongly worded statement, the ministry of external affairs defended India’s energy strategy, stating that its crude oil purchases from Russia are “a necessity compelled by global market conditions” and not a political endorsement of Moscow.“India will take all necessary measures to safeguard its national interests and economic security,” the MEA said, while highlighting that the US and European Union have continued trade with Russia, including in energy and critical commodities, despite publicly opposing the Ukraine conflict.The MEA also highlighted what it termed “double standards,” pointing out that the EU’s trade with Russia in 2024 was significantly higher than India’s. EU imports of Russian LNG, for instance, reached a record 16.5 million tonnes. The statement added that the US continues to import uranium, palladium, and fertilizers from Russia. India’s Russian oil imports increased from just 0.2% of total imports pre-war to over 35% in recent months, making Russia its top supplier.