India returns to Russian oil: state-owned companies resume discounted purchases despite US sanctions pressure
1 December 19:38
India is once again increasing its purchases of Russian crude oil – this time at much higher discounts and through intermediaries that are not under sanctions. This was reported by Bloomberg, according to [ komersant].
The publication reports that state-owned oil refiners Indian Oil Corp. and Bharat Petroleum have purchased new batches of Russian oil at a discount of about $5 per barrel, which is more than a month ago.
What has changed
According to sources familiar with the negotiations, both companies purchased crude for delivery in January from new trading structures, which offer both larger volumes and more attractive prices. The previous discount was about $3 per barrel.
According to the agency’s interlocutors, payments are made in UAE dirhams and US dollars, and the average income of the Russian Federation in such transactions can be $40-45 per barrel, taking into account logistics.
Why purchases have increased now
Indian refineries continue to assess the risks associated with changes in Western sanctions policy, so overall operations remain restrained. Even with the return to the market, new purchases are unlikely to exceed a third of the average supply level of 2024-2025, i.e. up to 600 thousand barrels per day.
Tough pressure from Washington also affects the dynamics. Donald Trump’s administration has already imposed a 50% duty on Indian goods, with an additional 25% as a penalty for Russian oil imports. In October, Trump publicly stated several times that India had agreed to reduce purchases.
Purchases of Russian oil have become one of the most sensitive topics in trade consultations between the US and India
Washington is trying to reduce Russia’s energy revenues, while New Delhi seeks to ensure energy security and access to cheap resources.
Currently, India seems to be looking for a balance – maintaining a certain level of imports from Russia, but retaining room for maneuver in negotiations with the United States.
