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Russia Counts on Big Oil Discount to Keep India Buying Despite US Pressure
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Russia expects India to maintain its purchases of Russian oil despite mounting pressure from Washington, a senior Russian official has said, according to Bloomberg on August 20.
Speaking to reporters in New Delhi on Wednesday, Evgeny Griva, Russia’s deputy trade representative in India, said that Indian imports of Russian crude are likely to remain at current levels. He emphasized that Moscow continues to offer oil at about a 5% discount, leaving Asia’s third-largest economy with limited alternatives.
According to Bloomberg, the comments come amid escalating trade tensions between Washington and New Delhi. US President Donald Trump has imposed a 25% tariff on Indian goods, with plans to raise the rate to 50% on August 27. Such a move would threaten the competitiveness of India’s $85 billion in annual exports to the United States.
Half of the penalty is tied directly to New Delhi’s oil purchases from Moscow, which Washington argues are helping fund Russian leader Vladimir Putin’s war against Ukraine. Indian officials, however, have defended their position, insisting on the right to buy from the most affordable suppliers and dismissing the tariffs as “unreasonable,” Bloomberg reported.
According to Griva, the availability of discounted Russian oil allows India to trade at a lower cost, helping the government keep domestic inflation under control. He also projected that bilateral trade between Russia and India could continue to expand by around 10% annually.
Earlier, it was reported that although India has signaled a willingness to reduce its dependence on Moscow, state-run refiners have resumed purchases of Russian oil after a short pause—moving forward despite steep US tariffs and growing criticism from the Trump administration.
