New Delhi, Aug 21: Russia offers India additional 5 Percent discount on oil purchases, signalling its firm desire to maintain bilateral energy cooperation despite rising trade tensions with the US.
Speaking to the media, Russian Ambassador to India Roman Babushkin stressed that Moscow values its “true strategic partnership” with New Delhi and is committed to overcoming challenges posed by US sanctions and tariffs.
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Russia offers oil discount to India
Babushkin emphasised that Russia has developed a “special mechanism” to counter Washington’s punitive trade measures. Without giving technical details, he assured that India’s access to affordable Russian oil will be secured.
Roman Babushkin said, “We hope that India will not stop buying our oil. We have a true strategic partnership and we are committed to deal with all challenges. A 5% fluctuation in rates is possible, which is subject to negotiations.”
Russia’s Deputy Trade Representative Evgeny Griva, who was accompanying him, said that despite the changing global political environment, crude oil exports to India will remain unaffected.
Russia questions US pressure on India
Criticising Washington’s recent stance, Roman Babushkin questioned the US’ motives behind imposing trade sanctions on India.
“WFriends, one should not behave like this. This policy shows double standards, blackmail and disrespect for national interests,” he said.
His remarks came soon after White House trade adviser Peter Navarro claimed that India’s oil imports from Russia were indirectly “financing Moscow’s war in Ukraine.” In an article for the Financial Times, Navarro alleged that India has become a “global clearing house” for Russian crude, turning contraband oil into high-value exports.
India’s stance on Russian oil imports
Despite US pressure, New Delhi has shown no intention of stopping Russian oil purchases. Instead, Indian officials are looking for a better price deal on Russian crude, the cap of which has been set at $60 a barrel from December 2022.
The EU recently lowered the price cap further, but India, the second-largest buyer of Russian crude, continues to import large quantities, and Russian oil accounts for about 42% of India’s total crude oil imports.
Impact on global oil prices
Babushkin warned that if India-Russia oil trade is disrupted, global crude oil prices could rise. He stressed that the partnership between the two countries extends beyond oil to nuclear energy, energy cooperation, trade and investment.
“The call by President Vladimir Putin to Prime Minister Narendra Modi means that India matters a lot. Our agenda is broad and strategic,” Babushkin said.
India-Russia energy partnership remains strong
Russia has repeatedly termed US sanctions and tariff threats as “illegal competition” and accused Washington of “weaponising the economy”. For Moscow, ensuring uninterrupted crude oil supplies to India is not just about trade but also geopolitical trust.
With the firm stance of both countries, experts believe India will continue to import Russian crude oil at competitive prices, especially when global energy demand remains volatile.