New Delhi: American companies have a long and controversial history of profiteering from wars, reaping enormous financial benefits while often shaping global policies to favor their interests—even as they criticize others, such as India’s purchases of Russian oil during the current geopolitical crisis. The latest attacks by Scott Besant, US Treasury Secretary, on Indian oil companies buying oil from Russia highlight the hypocrisy embedded in American responses to international trade amid conflict.
The Scott Besant Critique
Scott Besant accused Indian refiners of “profiteering” by purchasing discounted Russian crude oil, refining it, and reselling the products globally, including to nations that have sanctioned Russia. According to US officials, this “arbitrage” allegedly resulted in $16 billion in excess profits for some of India’s wealthiest corporate families. The Trump administration responded with a new wave of tariffs—totaling up to 50 percent on Indian oil imports—to punish India for not complying with US-led sanctions against Russia. Yet, Indian officials refuted these claims, pointing to national strategic autonomy, the need for affordable energy, and the fact that China’s purchases of Russian oil were even larger.
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American War Profiteering Practices
While sharply criticizing India, American companies themselves have profited massively from the military-industrial complex. Whenever conflict erupts worldwide, US Congressional approval of record-breaking defense budgets guarantees billions for weapons manufacturers such as Lockheed Martin, Boeing, RTX, Raytheon, and Halliburton.
These companies spend millions on lobbying and campaign donations to secure lucrative contracts and business-friendly policies.
High-profile former officials commonly land consulting or board positions at these firms after leaving public office, perpetuating the cycle of war profiteering.
Massive Pentagon Contracts and Lobbying
Data in various publications/US Congress/ have shown, since 2001, Pentagon spending has exceeded $14 trillion, with approximately one-third to one-half of this total spent on military contractors. The U.S. government funneled $771 billion in Pentagon contracts to just five major defense firms—Lockheed Martin ($313 billion), RTX (Raytheon, $145 billion), Boeing ($115 billion), General Dynamics ($116 billion), and Northrop Grumman ($81 billion)—between 2020 and 2024. This amount was more than double the entire U.S. budget for diplomacy and foreign aid ($356 billion) over the same period, underscoring the disproportionate emphasis on militarization over diplomacy.
Lobbying and Political Influence
US weapons manufacturers spent around $2.5 billion on lobbying across two decades, employing approximately 700 lobbyists in recent years, roughly equating to one lobbyist per member of Congress. This vast lobbying effort helps secure windfall contracts and military budgets, perpetuating their profits regardless of war outcomes. They also benefit from the revolving door between government officials and the defense industry, exemplified by former VP Dick Cheney retaining stock options in Halliburton, one of the largest Iraq War contractors, which received $39.5 billion in related contracts.
Historical Precedents of Profiteering
During the American Civil War (1861–1865), the government faced widespread corruption and profiteering. For instance, Secretary of War Simon Cameron, whose family owned railroads vital for troop movements, shaped policies that caused enormous profits for his family’s enterprises.
Weapons manufacturers like Colt’s Patent Fire-Arms Manufacturing expanded massively due to war demands, charging militaries higher prices than civilian or foreign customers. The Civil War thus set precedents for industrial profiteering from conflict.
In World War I, companies increased profits by up to 1,700 percent, with estimates showing that wartime expenditures of $52 billion yielded $16 billion in profits to corporations.
Waste, Fraud, and Oversight Failures
During the Iraq and Afghanistan wars, expedited contracting led to significant waste and fraud. Estimates from the Commission on Wartime Contracting suggest that between $31 billion and $60 billion was lost to waste and abuse. Such financial mismanagement inflated profits for contractors at enormous public cost.
Economic Impact and Financing of War
The Iraq and Afghanistan wars were the first major US conflicts financed primarily by debt rather than taxes, coinciding with Bush-era tax cuts. This fiscal approach contributed to mounting federal deficits and constrained economic policy, highlighting the broader economic costs of war profiteering beyond corporate profits alone.
Modern War Profiteering and the Ukraine Conflict
The US arms industry’s profits surged from escalating global security tensions. Military aid to Israel totaled over $18 billion within a year after October 2023, and military aid to Ukraine exceeded $65 billion since the 2022 invasion. These arms transfers boost revenue for defense contractors amid ongoing conflicts, keeping the cycle of war-driven profits active in the present day.
Market Performance of Defense Stocks
Studies have shown that military industry stocks historically outperform the general market during wartime, with returns bolstered by government contracts. This financial incentive skews corporate and political priorities toward continued militarized conflict rather than peace efforts.
Hypocrisy and Double Standards
The double standard becomes glaring when the US, itself the largest producer and consumer of oil, uses tariffs and sanctions as tools for its global agenda and trade leverage, while complaining about other nations’ trade practices. While Scott Besant and other US officials lambaste India for buying Russian oil, American corporations openly profit by selling weapons to Europe, which are then resold to Ukraine with a markup—directly fueling the conflict from which these companies benefit.
The US boasts about a 10 percent markup on arms sold to Europe and Ukraine, openly acknowledging war as a business model.
Defense contractors and energy companies in the US routinely shape policy and profit from the tensions that keep prices—and profits—high.
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Geopolitical Manipulation of Oil Markets
US policies contribute to volatility in the global oil market. Tariffs and sanctions on countries trading with Russia, such as India, add to economic instability worldwide and often serve to maintain high oil prices, benefiting American domestic producers.
Trump’s approach to oil—demanding high production while wanting lower prices for consumers—shows the contradictions at play.
Meanwhile, actions such as pressuring India could force a realignment of global energy flows, further stoking market turmoil and serving US strategic interests.
The US attacks on Indian companies for buying oil from Russia, led by Scott Besant, highlight a deliberate attempt to distract from America’s own entrenched system of dirty profiteering from war. As American corporations continue to profit off the suffering and instability of conflict zones, criticisms of others ring hollow, underlining the need for a genuinely equitable and ethical global approach to trade and peace.
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