New Delhi: Russia is offering India larger discounts on its Ural crude, even as the United States ramps up tariffs on Indian imports, according to a Bloomberg report. The price of Russian oil for cargoes loading in late September and October has dropped by $3–4 per barrel, making it more attractive for Indian refiners despite Washington’s recent trade actions.
The Trump administration last week doubled tariffs on Indian goods to 50% in response to New Delhi’s continued purchase of Russian crude, which the US claims supports Moscow’s war in Ukraine. India, however, has defended its stance, pointing out that there are no international sanctions preventing oil imports and that the US itself has not banned Russian oil.
Indian refiners, who briefly paused purchases in early August, have continued to import discounted Urals, which are expected to attract further interest. In July, the discount was just $1 per barrel, rising to $2.50 last week and now $3–4 per barrel for upcoming cargoes. By contrast, US crude remains priced at a $3 premium, further incentivizing purchases from Russia.
The move comes amid India’s closer engagement with Moscow and Beijing. At the recent Shanghai Cooperation Organisation summit, Prime Minister Narendra Modi highlighted India’s “special” relationship with Russia and reinforced a partnership approach with China, signaling a defiant stance amid US criticism.
White House advisor Peter Navarro has criticized India’s purchases, claiming that India buys discounted Russian oil, refines it, and sells it at a premium, thereby fueling Russia’s war efforts. New Delhi, however, maintains that its energy purchases are lawful and aligned with global market stability, underscoring India’s strategic autonomy in energy sourcing.
