Russia offers India 5% discount on crude oil to help tide over Trump tariffs

Russia and India will continue their energy trade despite pressure from the US, as Moscow has offered India a 5 per cent discount on oil, despite the sanctions on the latter from the West. The Deputy Trade Representative of Russia to India, Evgeniy Griva, said on Wednesday, “There will be a 5 per cent discount, subject to negotiation, on Russian crude oil purchases to India.” “Despite the political situation, approximately the same level of oil will be imported by India,” Griva said and added, “As for discounts, it’s a commercial secret. I think, because it’s usually just dialogue between businessmen and approximately usually 5%. It’s fluctuating, but usually it’s plus-minus 5%.”

Griva was joined by Russian Deputy Chief of Mission Roman Babushkin, who said, “We have trust in our ties,” although it is a “challenging situation” for New Delhi.

“We are confident that India-Russia energy cooperation will continue notwithstanding the external pressure,” he added.

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US accused India of funding Ukraine war

The US has accused India of funding the Ukraine war by purchasing Russian oil and imposed 50 per cent tariffs on New Delhi for buying oil from Russia.

White House Press Secretary Karoline Leavitt even said that Trump’s decision to impose steep tariffs on India was aimed at indirectly pressuring Russia to end its war in Ukraine.

White House trade adviser Peter Navarro had said that India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs.

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India condemned US tariffs

India has refused to cower down and has called out the West's duplicity and double standards by presenting hard facts. India also condemned the US tariffs, calling them “unfair, unjustified, and unreasonable.”

In its rebuttal, the Ministry of External Affairs said the US “actively encouraged” India’s oil imports from Russia because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict. The MEA said India’s oil trade with Russia was a result of the global market situation, while the EU and US were engaging with Russia in trade that was “not even a vital national compulsion”.

New Delhi also reiterated its priority of energy security and choice of trade between partners as a sovereign nation.

Prime Minister Narendra Modi also said that New Delhi would not back down in the face of economic pressure.

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Moscow lauds India for standing its ground on trade

Moscow has lauded India for standing its ground on trade partners and asserting its freedom of choice against American bullying.

Ambassador Babushkin said he doesn’t see American tariffs sabotaging the India-Russia oil trade.

“Russia has a special mechanism to continue crude oil supplies to India. We are committed to sit with India to address these problems and remove them,” he said on Wednesday.

Russian trade official Griva added that there was a “mechanism” to address shipping and insurance-related issues. He said Russia provided about 40% of India’s oil needs, which came at around 5% discount per barrel.

The US earlier threatened sanctions on Moscow and secondary sanctions on countries that buy its oil if no moves are made to end the war in Ukraine. China and India are the top two buyers of Russian oil.