India has sharply increased its imports of Russian oil this month, defying mounting challenges from US President Donald Trump. Indian energy companies are purchasing up to 300,000 barrels of crude per day from Russia, marking a 20% jump compared to August.
One of the key drivers behind the surge is Russia’s expanded discount to Indian buyers. While the price cut ranged between $1 and $2.5 per barrel in July, it has now widened to $3–4 per barrel for September and October. This ensures that the flow of Russian crude to India will remain strong in the coming months.
Trump has responded by announcing a 25% tariff on India for importing Russian oil. With this move, the tariff on Indian exports to the US has effectively doubled to 50%. India is one of only two countries facing the steepest US tariffs, the other being Brazil, which also faces a 50% duty. Despite this, India continues to buy more crude oil from Russia than from any other supplier. At the same time, Indian refiners have diversified, increasing purchases from the US, Brazil, and several African nations.
According to market data for the first week of September, the international benchmark Brent crude was priced at $68.45 per barrel. The Russian Urals variety, which India imports in bulk, was priced at $62.89 per barrel. With Moscow offering an additional $3–4 discount on this rate, Indian buyers are effectively paying around $58–59 per barrel.
The market spread between Brent and Urals has averaged about $6 in recent days. Currently, Brent trades at $66.68 per barrel, while Urals is at $63.19. Factoring in the latest Russian discount, Indian companies are striking deals at just $59–60 per barrel, further boosting the attractiveness of Russian supplies.
Despite Washington’s displeasure, Moscow remains India’s single largest crude supplier, accounting for more than 30% of total imports. Iraq follows with 17%, while Saudi Arabia ranks third with 16%.
Trump has also pressed the European Union, G7, and NATO to impose punitive tariffs of 50–100% on India, the largest buyers of Russian oil. However, these allies have so far declined to consider such measures. With discounts deepening and supply lines steady, India shows little sign of scaling back its reliance on Russian crude, even as trade tensions with Washington escalate.
Comments