Russian crude oil is becoming increasingly cheaper for Indian refiners as Washington intensifies pressure on New Delhi to scale back its trade with Moscow. The Trump administration has imposed heavy tariffs, claiming the purchases help finance Russia’s war in Ukraine.
Discounts on Urals Crude
Offers for Russia’s flagship Urals grade are now priced at a $3–$4 per barrel discount to Brent on a delivered basis for cargoes loading in late September and October, according to trade sources. The discount has widened compared to July, when it was just around $1. By contrast, U.S. crude cargoes have recently traded at a $3 premium, making Russian supplies significantly more attractive.
Since the start of the Ukraine war in 2022, India has emerged as a top buyer of Russian oil, despite repeated U.S. criticism. Between August 27 and September 1, state-run and private processors imported 11.4 million barrels of Russian crude, data from Kpler shows. One cargo came from the U.S.-sanctioned vessel Victor Konetsky through a ship-to-ship transfer.
At the Shanghai Cooperation Organization (SCO) summit in China this week, Prime Minister Narendra Modi reaffirmed India’s “special” relationship with Russia, while also pledging with Chinese President Xi Jinping to strengthen ties. Modi’s stance underscores India’s balancing act—defying U.S. pressure while deepening cooperation with both Moscow and Beijing.
India’s Oil Minister Hardeep Singh Puri rejected accusations from U.S. officials that Indian refiners are acting as a “laundromat” for Russian oil. Writing in The Hindu, Puri argued that Russian supplies have been vital in preventing global price spikes.
Outlook
With Urals crude offering deeper discounts and U.S. oil priced higher, Indian refiners are expected to continue strong purchases. While China remains Russia’s largest crude buyer, India’s defiant stance signals that Moscow can count on long-term demand from Asia’s two largest economies.
