Bloomberg: Russia Deepens Oil Discounts to Test India’s Commitment to US Deal

Over the past 10 days, discounts on Russian oil for Indian refiners have widened. This was reported by Bloomberg, citing traders who spoke on condition of anonymity. 

In particular, the discount on Russia’s flagship Urals crude has exceeded $10 per barrel relative to Brent, including delivery and other costs, traders said.

Market research company Argus, also cited by Bloomberg, estimates the discount at about $11 per barrel, compared with $9.15 before January 22.

Kpler puts the discount on Urals oil for India at around $9 per barrel — roughly $4–5 cheaper than Venezuelan oil.

Bloomberg noted that the deeper discounts "raise the question" of whether refiners will continue buying Russian oil despite the trade agreement with the United States.

On February 2, U.S. President Donald Trump, after a conversation with Indian Prime Minister Narendra Modi, announced that India had agreed to stop buying Russian oil. However, Reuters, citing sources, reported that Indian refiners would need a transition period to wind down purchases from Russia, as companies have already contracted cargoes loading in February and arriving in March.

Unnamed Indian government sources told NDTV that India will buy oil from countries not under sanctions, depending on price – including Venezuela.

According to Kpler, India is unlikely to completely abandon Russian oil in the near term. The firm expects imports to remain broadly stable at 1.1–1.3 million barrels per day through the first quarter and into early next quarter.

• In August 2025, Trump imposed an additional 25% duty on India for purchasing Russian oil, bringing the total rate to 50%.
• According to one of the Financial Times' sources, the price of certain batches of Russian oil supplied to India has been raised, fell to $22-25 per barrel on FOB terms (delivered to the port of shipment), this barely covers the breakeven point for Russia.