Russia will continue supplying crude oil to India under a “very special mechanism,” with bilateral trade expected to expand further this year, Russian officials said on Wednesday.
Roman Babushkin, charge d’affaires at the Russian embassy in New Delhi, told reporters that India’s oil imports from Russia would remain steady. He also confirmed that President Vladimir Putin is expected to meet Prime Minister Narendra Modi in New Delhi before the end of the year, although dates have not yet been finalised.
The announcement comes as India faces fresh trade pressure from Washington. The US plans to impose an additional 25 percent tariff on Indian exports from August 28, citing New Delhi’s continued purchases of discounted Russian crude since Western sanctions were imposed after Moscow’s invasion of Ukraine. However, Washington has stopped short of levying similar penalties on China, despite its rising Russian oil imports.
Last month, the European Union imposed sanctions on Nayara Energy, an Indian refiner partly owned by Russia’s Rosneft, prompting the company to cut back operations and discouraging trading partners.
Meanwhile, public sector refiners have resumed purchases of Russian crude for September and October delivery after a brief pause in July, when discounts narrowed and New Delhi faced criticism from Washington. Officials at Indian Oil Corporation (IOC) and Bharat Petroleum said wider discounts on Russia’s flagship Urals crude — currently around $3 per barrel — have made the oil attractive again.
IOC has also secured supplies of other Russian grades such as Varandey and Siberian Light. The refiner has told analysts it will continue to buy Russian oil based on commercial considerations.
India’s return to the Russian market could reduce availability for China, which had stepped up purchases during the Indian refiners’ absence. In recent weeks, Chinese buyers have booked at least 15 cargoes of Russian oil for October and November.
