New Delhi: India is securing even cheaper Russian crude amid ongoing US pressure to reduce its oil trade with Moscow, which Washington argues finances the war in Ukraine. The price of Urals crude has fallen to a discount of $3–$4 per barrel compared to Brent for shipments scheduled in late September and October, according to industry sources familiar with current offers reported Bloomberg.
India’s Russian Oil Purchases
Since the Ukraine conflict began in 2022, India has emerged as a major importer of Russian crude, but recently faced harsh US tariffs targeting this trade. The economic restrictions and vocal criticism from President Donald Trump’s administration have strained New Delhi’s relations with Washington, prompting India to strengthen ties with Russia and engage more closely with China.
Diplomatic Developments
At the Shanghai Cooperation Organization summit in China, Prime Minister Narendra Modi highlighted India’s “special” relationship with Russia. Modi also met with Chinese President Xi Jinping, with both leaders promising steps to bolster cooperation rather than rivalry, paving the way to rebuild relations.
US Criticism and Indian Response
Some of the strongest rebukes have come from White House adviser Peter Navarro. In response, Oil Minister Hardeep Puri defended India’s imports of Russian oil, stating in The Hindu that discounted shipments have helped buffer the global economy from sharp price increases.
Oil Price Trends and Buying Activity
Despite a temporary pause in early August, Indian refiners have continued to buy Russian oil, drawn by expanding discounts. Last week, Urals was offered at about $2.50 below Brent, compared to a $1 discount in July, while recent US crude purchases came at a $3 premium.
Between August 27 and September 1, India received 11.4 million barrels of Russian crude, including one shipment via ship-to-ship transfer from a US-sanctioned vessel, the Victor Konetsky. Both state-owned and private refineries participated in these purchases.
Russia’s Oil Exports
Urals crude, Russia’s main export grade, ships from western ports. While China is the biggest importer—receiving most shipments by pipeline and tanker—it hasn’t faced the same level of international criticism that India has encountered for this trade.