September 3, 2025

Washington is turning up the pressure on New Delhi, worried about India’s rising imports of Russian oil. Even as Moscow offers juicy discounts, the US has slapped a hefty 50% tariff on Russian oil bought by India. Why? Because these oil deals might be fueling Russia’s war in Ukraine. According to Bloomberg, Russian Urals crude oil is now a steal, with discounts of $3 to $4 per barrel compared to the standard Brent oil price for late September and October shipments. Last week, the discount was about $2.50, which itself was up from just $1 in July. In contrast, oil from the US costs Indian refiners more — a $3 premium over Brent — making Russian oil a much cheaper, attractive option. Peter Navarro, a former Trump adviser, strongly defended the tariffs. He said, “Before Putin invaded Ukraine, India didn’t buy Russian oil to speak of, very, very small amounts. What happened? Now, Russian refiners provide discounts, India refines it, and then sells it at a premium to Europe, Africa, and Asia. It fuels the Russian war machine.” His sharp words highlight the controversy behind India’s oil trade with Russia. India, the world’s third-largest oil importer, has dramatically increased its Russian crude purchases since 2022. Russian oil shipments jumped from less than 1% to nearly 40% of India’s total oil imports. In 2024–25, Russia made up 36% of India’s 5.4 million barrels per day of oil imports, surpassing suppliers like Iraq, Saudi Arabia, the UAE, and the US. New Delhi argues it is not breaking any international laws by buying Russian oil, pointing out that no sanctions yet ban crude purchases. The EU recently banned refined fuels made from Russian oil, but the US has not followed the same path. Many media outlets say India is saving between $10 billion and $25 billion thanks to discounted Russian oil. But brokerage CLSA paints a more modest picture, estimating actual savings at just $2.5 billion annually — or about 0.6% of India’s GDP. The oil deals have turned into a bigger mess in India-US trade relations. Besides the 50% tariff on Russian oil, the US has also hit some Indian goods with a 25% duty. Still, Indian refinery chiefs suggest the hunt for cheap Russian crude will go on. India seems ready to stand its ground, showing little sign of bowing to US pressure. This oil drama isn’t just about barrels and discounts; it's about geopolitics, big money, and a balancing act between two global giants. Will this standoff push India and the US closer or pull them further apart? Time will tell.

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Tags: India, Russian oil, Us tariffs, Oil imports, Trade tension, Ukraine war,