Russian crude becomes cheaper for India as US pressure mounts over oil imports linked to Moscow
New Delhi
Russian crude is becoming more affordable for Indian refiners even as the United States intensifies pressure on New Delhi to scale back its energy ties with Moscow. Washington argues that India’s oil purchases are indirectly funding Russia’s war in Ukraine.
Urals crude is currently being offered at a discount of $3–$4 a barrel to Brent on a delivered basis for September and October cargoes, according to traders familiar with the offers. This is a wider gap than July, when discounts had narrowed to about $1. By contrast, some Indian refiners have recently paid a $3 premium for US crude.
India emerged as one of the largest buyers of Russian oil after the Ukraine war began in 2022. However, the US has imposed steep tariffs and repeatedly criticized the trade. Facing this pressure, New Delhi has sought closer alignment with Moscow while also signaling improved ties with China. At this week’s Shanghai Cooperation Organization summit, Prime Minister Narendra Modi described India’s relationship with Russia as “special,” and held talks with President Xi Jinping to rebuild trust. Modi also appeared alongside Russian President Vladimir Putin in a public display of solidarity.
Oil Minister Hardeep Singh Puri defended India’s purchases, arguing in The Hindu that Russian flows have helped shield the global economy from price shocks. Despite a brief pause in early August, Indian refiners imported 11.4 million barrels of Russian crude between August 27 and September 1, including one cargo from a US-sanctioned vessel.
Russia’s Urals grade, exported largely from its western ports, is its flagship crude. China remains Moscow’s largest buyer, importing through pipelines and seaborne routes, though Beijing has largely avoided the public criticism directed at India.
