Russia Offers India 5% Oil Discount as Trump Tariff Dispute Escalates
By Global Leaders Insights Team | Aug 20, 2025
Russia will continue to supply oil to India at a 5% discount, despite US pressure and sanctions. Evgeniy Griva, Russia's deputy trade representative in India, stated that "there will be a 5% discount on Russian crude oil purchases to India, subject to negotiation."
Griva continued: "Despite the political situation, approximately the same level of oil will be imported by India." He said, "Discounts are a commercial secret. I believe this is because it is usually just a conversation between businessmen and only about 5%. It fluctuates, but it is usually plus or minus 5%.
Key Highlights
- Russia offers India ~5% discount on Russian oil and allows rupee payments despite mounting U.S. sanctions.
- IOC and BPCL resume Russian oil imports for September, driven by widened discounts despite tariff threats.
He was joined by Russian Deputy Chief of Mission Roman Babushkin, who stated that "we have trust in our ties" despite the "challenging situation" for New Delhi. He further stated: "We are confident that India-Russia energy cooperation will continue notwithstanding the external pressure."
Meanwhile, the United States has accused India of funding the Ukrainian war by purchasing Russian oil, and it has imposed 50% tariffs on New Delhi for doing so. "India serves as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while providing Moscow with the dollars it requires," White House trade adviser Peter Navarro stated.
Also Read:Russia & India Reaffirm Strategic Partnership Amid U.S. Tariff Hike
"Look, the president has applied tremendous public pressure to end this war. As you can see, he has imposed sanctions on India, among other actions. He's made it clear that he wants this war to end, and he's dismissed other suggestions that we wait another month before holding any meetings," she said.
The US had previously threatened sanctions on Moscow as well as secondary sanctions on countries that buy its oil if no steps were taken to end the conflict in Ukraine. China and India are the two largest buyers of Russian oil.
