Russia Offers India 5% Discount on Crude Oil Amid US Tariff Pressure

Russia Offers India 5% Discount on Crude Oil Amid US Tariff Pressure

Russia has announced that it will continue supplying crude oil to India at a 5% discount, even as the United States increases tariff pressure on New Delhi for purchasing Russian oil amid the Ukraine conflict.

Evgeniy Griva, Russia’s Deputy Trade Representative to India, confirmed the development, saying, “There will be a 5% discount, subject to negotiation, on Russian crude oil purchases to India.” He explained that the discount is typically discussed at a commercial level and usually fluctuates around plus-minus 5%.

Russian Deputy Chief of Mission Roman Babushkin reiterated the strength of India-Russia energy ties despite global geopolitical tensions, stating, “Although this is a challenging situation for New Delhi, we have trust in our relationship. Energy cooperation will continue notwithstanding the external pressure.”

Meanwhile, the United States has accused India of indirectly funding Russia’s war in Ukraine by buying its oil and converting embargoed crude into export-ready products. In response, President Donald Trump’s administration has imposed a 50% tariff on India, a move that could significantly impact sectors like textiles, leather, and marine exports.

White House trade adviser Peter Navarro said, “India acts as a global clearinghouse for Russian oil, giving Moscow the dollars it needs.” Karoline Leavitt further clarified in a briefing that the tariffs were aimed at putting secondary pressure on Russia to end the Ukraine conflict.

India has strongly condemned the tariffs, calling them “unfair, unjustified, and unreasonable”, and Prime Minister Narendra Modi asserted that India would not succumb to economic coercion. Despite repeated US threats of secondary sanctions on nations buying Russian oil, India and China remain the top two buyers of Moscow’s crude exports.

 

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