Russia cuts oil prices for India – Bloomberg
Photo: Discounts on Russian oil for India have risen to $4 (Getty Images)
India remains the largest importer of Russian oil. Even Trump's tough tariffs have not stopped trade with Moscow, Bloomberg reports.
Russia lowers Urals price for India amid US pressure
Russian Urals oil continues to fall in price for Indian buyers, while New Delhi faces sustained pressure from the US to reduce trade with Moscow. Donald Trump's administration claims that export revenues are helping to finance the war against Ukraine.
Discounts on supplies
According to sources who received offers for Russian oil, the price of Urals has fallen to a discount of $3-4 per barrel to Brent on delivery terms. This applies to shipments that will be loaded in late September and October.
Last week, the discount was about $2.5 per barrel, and in July it was only $1. For comparison, American oil purchased by a number of Indian refineries recently cost about $3 more than Brent.
India's reaction
Despite the tough tariffs imposed by Donald Trump on trade with Russia, Indian refiners continue to purchase Urals. Constant criticism and economic measures from Washington have prompted Prime Minister Narendra Modi to make statements about the importance of relations with Moscow.
India has become the largest importer of Russian oil shipments by sea since the start of the full-scale war in Ukraine in 2022. Urals remains the flagship brand of Russian oil, which is supplied from the country's western ports.
The biggest sponsor of Russia's war against Ukraine
According to Reuters, Russian oil exports to India will increase in September. Russia has lowered prices to sell more raw materials, as several refineries have been disrupted by Ukrainian drone strikes.
Russia covers about 40% of India's oil needs, making the country the largest buyer of Russian seaborne oil. Before the war, the share was less than 1%. China and Türkiye also remain major customers.
White House trade adviser Peter Navarro said India has become a hub for processing cheap Russian oil. Companies buy oil at a significant discount, refine it, and export the fuel to Europe, Africa, and Asia. The proceeds go to politically connected energy oligarchs and then to Putin's military budget.
