Russia Offers India 5% Discount on Crude Oil, Amid US Tariffs and Ukraine War

Strategic Insights -

The Russian government has hinted at offering a 5% discount on crude oil purchases to India, a move that comes amidst the US imposing 50% tariffs and penalties on Indian exporters. Speaking to reporters, Evgeniy Griva, the Deputy Trade Representative of Russia to India, disclosed that the discount was typically kept confidential but hovered around 5%. This move has been welcomed by the Russian government, which has praised New Delhi for resisting US pressure.

Key Takeaways:

  • Russia has hinted at offering a 5% discount on crude oil purchases to India, with Deputy Trade Representative Evgeniy Griva stating that the discount typically hovers around 5%.
  • The disclosure comes amidst US President Donald Trump's administration imposing 50% tariffs and penalties on Indian exporters, in an effort to indirectly pressure Moscow to end its war in Ukraine.
  • India has defended its crude imports from Russia as a matter of energy security and sovereign trade choice, pointing out that Washington had initially "actively encouraged" India to buy Russian crude after Europe diverted supplies.
  • Russia currently supplies about 40% of India's oil needs, nearly half of its 250 million tonnes of annual imports.
  • Washington has pressed India to reduce Russian crude purchases, but New Delhi has signaled that it will continue to prioritize affordable energy supplies.
  • The Russian government has praised New Delhi for resisting US pressure, with Ambassador Roman Babushkin stating that "India is asserting its freedom of choice against American bullying."

Statistics:

  • India imports 250 million tonnes of oil annually, with Russia providing 40% of this amount.
  • 50% tariffs and penalties have been imposed on Indian exporters by the US, in an effort to indirectly pressure Moscow to end its war in Ukraine.
  • The Russian government has reportedly developed a special mechanism to continue crude oil supplies to India, suggesting that they are committed to maintaining this partnership.

Sources:

  • Indian National Press (Bombay) Pvt. Ltd. (2025) - "Russia offers India 5% discount on crude oil" (distributed by Contify.com)
  • ( Press Secretary, Karoline Leavitt, statement on the US tariffs on Indian exporters)