Russia’s Ural crude discounted by $2 to $2.50 per barrel
In the game of international politics and trade, friendship and concessions often change major equations. Something similar is being seen in the ongoing tussle over crude oil between India, Russia and America. On one hand, US President Donald Trump has shown strictness towards India on purchasing oil from Russia, while on the other hand, India’s friend Russia has thrown such a discount card that all the pressure seems to be ineffective. According to a report by Money Control, India can now buy more oil from Russia bypassing American objections.
America had put pressure on India
Actually, last August US administration India imposed an additional tariff of 25% on oil imports from Russia. America’s objective was clear – to put pressure on India and distance it from Russia. But the effect of this bet seems to be the opposite, because India has not only demonstrated its independent foreign policy, but has also kept its economic interests at the top.
Russia sets up crude oil sale
Meanwhile, Russia has further intensified its discount on Ural crude oil for India. According to sources, Russia has offered India a discount of $2 to $2.50 per barrel for the month of November. This discount is so attractive that the impact of the American tariff is almost eliminated.
Interestingly, during July-August this discount had come down to about $1 per barrel, because at that time Russia was giving priority to its domestic market and local customers. But now Russia has once again opened its doors to India, making Russian oil a very profitable deal for Indian refineries.
Wherever cheap oil is available, it will be purchased from there only.
India has made its stand completely clear on this entire matter. The government says that the decision to purchase oil for India is entirely based on prices and the economic interests of the country. India is a big oil importing country and it will buy oil from any country which provides it cheap oil on its terms and conditions. The slow pace of ongoing negotiations regarding trade deal with America is also a reason due to which India does not want to turn its back on a reliable supplier like Russia.
The figures are also pointing in the same direction. Russia is a major oil supplier to India. However, while Russia’s share in India’s total oil imports was 40% in April, it came down to 33.9% in September. But now after the increase in discount, there may be a rise in it again. According to Kpler, an organization that monitors the movement of ships, crude oil imports from Russia may increase to about 1.7 million barrels per day in October, which is about 6% more than in September.
India is not dependent only on Russia
It is not that India is dependent only on Russia. Indian government oil companies are also fully alert about future energy security. Companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum have started talks on long-term oil supply deals with Middle East and African countries for 2026. A special kind of flexibility is being stipulated in these new deals. Under this, if Russian oil becomes more profitable and viable in the future, Indian buyers will have the right to sell the cargo under these deals to someone else or optimize it as per their convenience.