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New Delhi continues to resist US pressure
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Russian oil discounts widen to $3–4 a barrel as US slaps India with 50% tariff over Moscow crude imports
Russian crude has become even more affordable for Indian refiners, with discounts on Urals widening to $3–4 per barrel compared to Brent, according to a Bloomberg report. The price gap, up from $2.50 last week and just $1 in July, makes Russian oil far cheaper than US crude, which was recently sold to India at a $3 premium, reported timesofindia.indiatimes.com.
India, the world’s third-largest oil importer, has sharply increased Russian crude purchases since 2022, with imports now making up 36% of its 5.4 million barrels per day, overtaking Iraq, Saudi Arabia, the UAE, and the US.
Trump adviser Peter Navarro defended the newly imposed 50% tariff on India’s exports, claiming that New Delhi was helping Moscow fund its war in Ukraine. “Before Putin invaded Ukraine, India didn’t buy Russian oil to speak of—very, very small amounts. Now, Russian refiners provide discounts, India refines it, and then sells it at a premium to Europe, Africa, and Asia. It fuels the Russian war machine,” Navarro said.
India’s Russian oil imports surge despite US pressure, as Moscow now supplies over one-third of New Delhi’s total crude needs
Despite US criticism, Indian officials insist their crude purchases do not violate international sanctions, pointing out that neither Washington nor Brussels has banned buying Russian oil directly. However, the EU recently prohibited imports of refined fuel made from Russian crude.
Although media reports often claim India has saved between $10 billion and $25 billion from discounted Russian imports, brokerage firm CLSA disputes this, pegging actual savings at just $2.5 billion annually—around 0.6% of GDP.
Trade tensions between Washington and New Delhi continue to escalate, with the US additionally imposing a 25% duty on Indian goods. Still, refinery executives suggest India’s crude procurement strategy will remain unchanged, with New Delhi showing little sign of bowing to American pressure.
