Defying U.S. President Donald Trump’s tariff measures and repeated warnings, India has sharply increased its crude oil imports from Russia. Compared with August, September recorded a 20% surge, with Indian companies purchasing nearly 300,000 barrels per day.
The primary driver of this increase has been Russia’s generous discounts. While in July Moscow offered Indian refiners a discount of $1–2.5 per barrel, this margin has now widened to $3–4 per barrel for both September and October. This ensures a steady and profitable flow of Russian oil into the Indian market in the months ahead.
President Trump, in retaliation to India’s continued reliance on Russian crude, imposed a 25% additional import duty, effectively raising the total U.S. tariff on Indian goods to 50%. India now joins Brazil as one of the two countries facing Washington’s highest tariff regime. Despite this, Russian oil continues to dominate India’s energy basket, even as imports from the U.S., Brazil, and African nations have also risen.
According to early September figures, the international benchmark Brent crude averaged $68.45 per barrel, while Russia’s Urals grade traded at $62.89. With an added Russian discount of $3–4, Indian refiners are effectively securing crude at $58–59 per barrel—a clear cost advantage.
The price gap between Brent and Urals has consistently hovered around $6 per barrel in recent weeks. As of now, Brent stands at $66.68, while Urals is priced at $63.19. Factoring in Moscow’s discount, Indian refiners can lock in contracts at $59–60 per barrel, further strengthening the appeal of Russian crude.
President Trump has also urged the European Union, G7, and NATO to impose import tariffs of 50–100% on both India and China for their large-scale purchases of Russian oil. However, these calls have so far been ignored by Western allies.
Despite international criticism, Russia remains India’s largest crude supplier, accounting for over 30% of total imports. Iraq follows with 17%, while Saudi Arabia holds the third position at 16%.
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