Russia Offers India Oil at 5% Discount as U.S. Tariff Battle Heats Up

Amid American pressure and rising tariffs, Russia has announced that it will keep selling crude oil to India at a discounted rate of 5 per cent, even as the United States tightens pressure with heavy sanctions and tariffs of up to 50 per cent on Indian exports. Moscow’s Deputy Trade Representative in New Delhi, Evgeny Griva, said supplies will continue as agreed, with the discount depending on negotiations. He also expressed confidence that energy ties between India and Russia will remain steady despite global political tensions.

5% Discount Subject to Negotiation

Griva said that India will get a 5% discount on Russian crude oil purchases, which will depend on negotiations. He further added that India’s oil imports will remain at nearly the same level and that this arrangement will not be affected by political circumstances. However, he termed the exact figure of the discount a commercial secret and clarified that it may usually be slightly above or below 5%. Roman Babushkin, Russia’s Deputy Chief of Mission in New Delhi, joined Griva at the briefing. He acknowledged that the situation poses challenges for India but voiced confidence in bilateral ties, adding that energy cooperation between the two nations would endure despite outside pressures.

America’s Allegation on India

Conversely, the United States has alleged that India is helping fund the Ukraine conflict through its purchases of Russian oil. White House Trade Advisor Peter Navarro said that India is acting as a global clearing house for Russian oil, converting sanctioned crude into high-value exports, while simultaneously providing Moscow with the much-needed dollars.

Trump’s Decision: 50% Tariff

In the previous month, U.S. President Donald Trump declared a 50% duty on Indian exports, linking the decision to New Delhi’s continued imports of Russian energy. He maintained that the move was intended to deter Moscow from extending the conflict. At the same time, White House Press Secretary Karoline Leavitt emphasized that the sanctions form part of a wider plan aimed at compelling Russia to enter negotiations. By imposing sanctions and other measures on India, the President has made it clear that he wants this war to end. India has strongly condemned the U.S. tariffs. New Delhi termed them unfair, unjust, and unreasonable. Prime Minister Narendra Modi affirmed that India would firmly safeguard the rights of its farmers, herders, and fishermen without making any concessions.