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Russia Offers India $5-a-Barrel Discount to Keep Oil Exports Flowing
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![Photo of Dariia Mykhailenko]( "Photo of Dariia Mykhailenko")
Russian crude is being sold to Indian buyers at discounted rates as European Union sanctions and the prospect of US penalties weigh on demand, Bloomberg reported on August 7, citing data intelligence firm Kpler Ltd.
According to Bloomberg, the price of Urals—the OPEC+ producer’s benchmark grade—is now more than $5 per barrel below Dated Brent, compared to near parity just two weeks earlier.
Kpler’s head of crude oil analysis, Homayoun Falakshahi, said the downward trend is expected to persist amid uncertainty over potential US measures, prompting greater caution from both state-owned and private refiners, Bloomberg reported. Planned maintenance at Russian refineries between August and October is also projected to increase export volumes during that period.
This uncertainty has already prompted India’s state-owned refiners—Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp.—to pause spot purchases of Russian crude. Bloomberg, citing sources familiar with the companies’ procurement plans, reported that the refiners plan to skip the upcoming cycle until they receive clear government guidance. The suspension will affect purchases of Urals cargoes for October-loading and could lead to further disruptions.
The decision follows US President Donald Trump’s move to double tariffs on all Indian exports to the United States in response to New Delhi’s continued imports of Russian oil. The measure is aimed at pressuring Moscow to end its war against Ukraine. The escalation has caused volatility in oil futures as traders weigh the potential impact on global markets and Russia’s ability to find alternative buyers if Indian refiners scale back purchases.
Earlier, US President Donald Trump stated that China could face additional tariffs, mirroring the recently announced 25% duties on India for its continued imports of Russian oil.
