According to a Kommersant report, Russia has managed a notable narrowing of the price gap for its Urals blend at Indian ports, bringing the discount to roughly $5 per barrel in the wake of reduced export volumes. This change ensures Urals remains the most affordable non sanctioned oil option available to India. Even as Indian officials signal a plan to curb dependence on Russian crude, the country is still likely to remain the largest buyer of Russia’s seaborne oil shipments for the foreseeable future, a trend that continues to shape bilateral energy flows. [Kommersant]
A review by Kpler confirms that Urals discounts relative to Brent have fallen to about $4–$5 per barrel on delivery to port, preserving Urals’ edge among medium-grade oils within the Indian market. After the European Union introduced new sanctions as part of its broader strategy against Russia over the Ukraine conflict, India rose to become the top destination for Russia’s offshore oil shipments, receiving cargoes on a port-of-destination delivery basis (DES). China remains the second-largest recipient of Russian crude shipped by sea. [Kpler]
Both India and China have stepped up their intake of Russian oil this year, drawn by lower prices resulting from sanction-driven reductions. Earlier in the year, the Urals discount to Brent on a CIF basis hovered around $40 per barrel. By March, Rosneft announced an increase in supply to India’s state-owned refining network. It is also noted that Rosneft holds a substantial stake—more than 49%—in Nayara Energy, the Indian refinery that processes oil imported from Russia. [Rosneft] [Nayara Energy]
These shifts come amid ongoing adjustments in pricing structures and delivery terms as traders and policymakers respond to sanctions regimes and evolving demand in Asia. India and China have demonstrated continued appetite for discounted Russian oil, balancing strategic energy needs with regulatory and geopolitical considerations. Observers highlight that even as India contemplates reducing reliance on Russian crude, practical trade patterns and refinery capabilities help sustain a robust level of Russian oil receipts to India, while China maintains a steady, albeit smaller, level of purchases. The dynamic underscores how sanctions and price differentials influence the flow of fuel between major Eurasian economies and Russia’s export profile. [Kommersant] [Kpler] [Rosneft]