New Delhi is facing intensified pressure from Washington over its rising imports of Russian oil, even as Moscow offers ever-deeper discounts to Indian buyers. The Trump administration has hit India with a 50% tariff on its oil purchases from Russia, citing concerns that these imports are helping fund Russia’s war in Ukraine.
According to Bloomberg, Russian Urals crude is now being offered at discounts of $3 to $4 a barrel compared with Brent for shipments loading in late September and October. Last week, the discount stood at about $2.50 per barrel, up from just $1 in July. By contrast, US crude recently bought by Indian refiners came at a $3 premium to Brent, making Russian oil the cheaper alternative.
“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,” Trump adviser Peter Navarro said, defending the steep tariffs, reported TOI.
India emerges as a major buyer
India, the world’s third-largest oil importer, has sharply ramped up Russian crude purchases since 2022, rising from under 1% of imports to nearly 40%. In 2024–25, Russia accounted for 36% of India’s 5.4 million barrels per day of imports, overtaking Iraq, Saudi Arabia, the UAE, and the US.
New Delhi maintains that its oil trade with Moscow does not breach any international laws, noting that no sanctions prohibit crude purchases. While the EU recently banned refined fuel made from Russian oil, the US has not applied similar restrictions.
Although media reports have suggested India saved between $10 billion and $25 billion from discounted Russian crude, brokerage CLSA estimates the actual benefit is far lower. “Benefit from Russian oil imports is way less than exaggerated media numbers,” the firm said, calculating India’s annual savings at just $2.5 billion, or about 0.6% of GDP.
Trade tensions escalate
India’s Russian oil imports have become a flashpoint in broader trade discussions with Washington. In addition to the 50% tariff on crude, the US has imposed a 25% duty on other Indian goods.
Despite this, Indian refinery executives indicate that procurement of Russian crude will continue, with New Delhi showing little inclination to bow to US pressure.
With inputs from TOI
According to Bloomberg, Russian Urals crude is now being offered at discounts of $3 to $4 a barrel compared with Brent for shipments loading in late September and October. Last week, the discount stood at about $2.50 per barrel, up from just $1 in July. By contrast, US crude recently bought by Indian refiners came at a $3 premium to Brent, making Russian oil the cheaper alternative.
“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,” Trump adviser Peter Navarro said, defending the steep tariffs, reported TOI.
India emerges as a major buyer
India, the world’s third-largest oil importer, has sharply ramped up Russian crude purchases since 2022, rising from under 1% of imports to nearly 40%. In 2024–25, Russia accounted for 36% of India’s 5.4 million barrels per day of imports, overtaking Iraq, Saudi Arabia, the UAE, and the US.
New Delhi maintains that its oil trade with Moscow does not breach any international laws, noting that no sanctions prohibit crude purchases. While the EU recently banned refined fuel made from Russian oil, the US has not applied similar restrictions.
Although media reports have suggested India saved between $10 billion and $25 billion from discounted Russian crude, brokerage CLSA estimates the actual benefit is far lower. “Benefit from Russian oil imports is way less than exaggerated media numbers,” the firm said, calculating India’s annual savings at just $2.5 billion, or about 0.6% of GDP.
Trade tensions escalate
India’s Russian oil imports have become a flashpoint in broader trade discussions with Washington. In addition to the 50% tariff on crude, the US has imposed a 25% duty on other Indian goods.
Despite this, Indian refinery executives indicate that procurement of Russian crude will continue, with New Delhi showing little inclination to bow to US pressure.
With inputs from TOI
You may also like
Maratha Reservation Agitation: Bombay HC adjourns case till Wednesday
19 Out Of 57 Horses Brought From Hyderabad Die Under Mysterious Circumstances In MP's Jabalpur; Case Registered Against Farmhouse Owner
When does Fallout 76 Season 22 start and how long is server maintenance? What you need to know
Pune Healthcare Paralysed As 1,400 NHM Staff Continue Strike For Two Weeks
Chilling moment ex-inmate pulls gun before killing prison guard who exposed affair
