The discount on Russia’s Urals crude for Indian buyers has widened to between $3 and $4 per barrel, amid mounting U.S. pressure on New Delhi to scale back imports.
At the latest trading session, Urals crude sold for $62.89 per barrel, compared with $68.45 for Brent. Over the past month, Urals hovered between $61 and $65, with the Brent gap reaching as much as $6 in mid-August. Bloomberg reported, citing unnamed sources, that September and October cargoes were contracted at discounts of $3–$4. Last week, the discount averaged $2.50, while in July it narrowed to about $1.
U.S. Tariff Pressure
President Donald Trump launched a campaign last month urging India to curb Russian oil purchases, arguing that reduced demand could pressure Moscow into ending the war in Ukraine. To enforce this, Washington imposed an additional 25% tariff on Indian exports after New Delhi refused to comply, raising the total tariff burden to 50% as of August 27.
Despite the pressure, Russia remained India’s top crude supplier in July, covering 31% of total imports. Iraq followed with 17%, while Saudi Arabia supplied just above 16%.
India’s Savings From Russian Crude
According to the Indian Express, India has saved $12.6 billion since 2022 by buying discounted Russian oil. Analysts suggest the figure could be higher when considering the global price stability that came from redirecting Russian supplies from Western markets to Asia, particularly China and India, after sanctions took effect.
This price redirection helped prevent prolonged Brent spikes above $100 per barrel, easing global inflationary risks.
War of Words
The U.S. has intensified criticism of India’s reliance on Russian oil. White House trade adviser Peter Navarro accused New Delhi of “profiteering” and called the country “a laundromat for the Kremlin,” citing its re-exports of refined fuels to Europe and Asia.
In response, India’s oil minister, Hardeep Singh Puri, defended the policy, stressing that Russian oil is not sanctioned under international law but is managed through a G7/EU price cap designed to keep supplies flowing. He argued that India’s approach helped avert a potential $200 per barrel shock, noting that Russia supplies nearly 10% of global oil and remains critical to market stability.