Jai Siya Ram

Key Developments

• Exclusive Discount Offered
  Russia is extending a 5% discount on its crude oil to Indian buyers, according to Evgeniy Griva, Russia’s Deputy Trade Representative in India. He described the discount as a “commercial secret”, but confirmed it “typically hovers around ±5%” during private negotiations between suppliers and refiners.

Oil Imports Maintain Momentum
Indian state refiners, including Indian Oil Corporation (IOC) and Bharat Petroleum (BPCL), have resumed purchases of Russian crude for September–October. Discounts on Russian Urals crude have widened to approximately $3 per barrel, making them economically attractive despite U.S. threats.

India a Key Russian Oil Market
Russia emphasized that about 35% of India’s total oil imports now come from Russian supplies—up from a negligible share in 2022. Russia remains confident that India will continue its oil purchases in the face of escalating U.S. tariffs and sanctions. To support bilateral trade, Moscow is also setting up payment channels in rupees and backing trade via alternate mechanisms.

Diplomatic Context
This discount and renewed oil supply come amid heightened trade tensions: the U.S. has imposed a steep 50% tariff on many Indian goods in retaliation for New Delhi’s continued oil imports from Russia. India, meanwhile, emphasizes its sovereign right to pursue energy security.