As US Oil Prices Surge, Russia Extends Larger Discounts to India: Report

The price of Russian oil to India has come down to a discount of $3 to $4 per barrel, as New Delhi continues to bear the brunt of US tariffs. Russia's Ural crude is being offered at discounts for October and late September shipments, Bloomberg informs.

The Trump administration, last week, doubled the tariffs against India to 50% for its imports of Russian oil, with the aim of penalizing New Delhi for implicitly backing the Ukraine war.

Ever since 2022 when the Russia-Ukraine war broke out, India has been a major importer of Russian crude. Washington has repeatedly castigated India but that has not deterred it from further deepening its relations with Moscow and Beijing, indicating a more autonomous foreign policy approach.

During the Shanghai Cooperation Organisation summit in China, the Prime Minister stressed that Russia and India have a "special" relationship. Prime Minister Modi also held a meeting with Chinese President Xi Jinping, and both leaders reiterated their devotion to partnership over rivalry.

White House advisor Peter Navarro had launched a scathing criticism of India by 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."

India has defended its stance, indicating that there are no sanctions that bar the import of Russian oil and that even the US has not banned such imports.

Despite a short hiatus in early August, Indian refiners continued buying Russian crude. The lower-cost Urals are likely to gain even more attention, since last week the discount was at $2.50 per barrel—versus $1 last month. By contrast, US crude bought by Indian refiners commanded a comparable premium of about $3.

Ural is Russia's crown jewel oil, normally shipped from its west-facing ports.