- By Shivangi Sharma
- Tue, 02 Sep 2025 10:12 PM (IST)
- Source:JND
India is receiving steeper discounts on Russian oil shipments even as Washington doubles down on tariffs, according to a Bloomberg report. Moscow has lowered the price of its flagship Ural grade crude for India by USD 3 to USD 4 per barrel, compared with Brent, for cargoes loading in late September and October. This comes as the Trump administration intensifies pressure on New Delhi to reduce energy imports from Russia.
The latest discounts mark a significant increase from July, when Urals crude was just USD 1 cheaper than Brent. By last week, the figure had risen to USD 2.50, and now it stands at USD 3–USD 4. In comparison, US crude recently purchased by Indian refiners carried a USD 3 premium to Brent, making Russian oil the far more economical choice.
Russia has consistently maintained that it will continue to supply oil to India despite Western objections. The Kremlin also criticised the United States, saying every nation has the right to choose its own trading partners. China echoed that sentiment, describing US tariffs as bullying tactics.
US Tariffs And Criticism
The Trump administration last week doubled tariffs on Indian goods to 50 per cent as punishment for New Delhi’s continued purchase of Russian oil. White House adviser Peter Navarro launched a sharp attack, saying:
“Before Putin invaded Ukraine, India didn’t buy Russian oil to speak of, very, very small amounts. What happened? Now, Russian refiners provide discounts, India refines it, and then sells it at a premium to Europe, Africa, and Asia. It fuels the Russian war machine.”
Despite Washington’s criticism, India has defended its position, stressing that no international sanctions prohibit the purchase of Russian crude. Officials argue that India’s refiners are simply buying the cheapest available energy to meet domestic demand.
India’s Growing Energy Dependence On Russia
Since the start of the Russia-Ukraine war in 2022, India has become one of Moscow’s largest energy buyers. Even after a brief pause in August, Indian refiners resumed purchases, lured by attractive pricing. Analysts say that the widening discount will further strengthen India’s dependence on Russian crude.
The oil trade is also reinforcing India’s diplomatic alignment with Russia and China. At the Shanghai Cooperation Organisation (SCO) summit in Beijing, Prime Minister Narendra Modi reaffirmed that India and Russia share a “special” relationship. He also met Chinese President Xi Jinping, with both leaders pledging cooperation rather than rivalry.
