New Delhi Sept 3: As diplomatic tensions rise between India and the United States, Russia has reportedly offered India even deeper discounts on crude oil and additional deliveries of its advanced S-400 surface-to-air missile systems.

In a strategic move to strengthen energy ties, Russia has reportedly offered India deeper discounts on its crude oil exports, with prices for its flagship Urals grade dropping by $3 to $4 per barrel for shipments scheduled in late September and October.

The Trump administration recently imposed 50% tariffs on Indian goods, citing India’s continued purchase of Russian oil as a factor contributing to the Ukraine conflict.

Despite mounting pressure from Washington, Indian refiners have maintained their imports of Russian crude, citing economic necessity and the absence of international sanctions prohibiting such trade. The discounted Urals crude remains significantly cheaper than US oil, which is currently priced at a $3 premium to Brent.

At the recent Shanghai Cooperation Organisation (SCO) Summit in China, Prime Minister Narendra Modi reaffirmed India’s “special” relationship with Russia and held bilateral talks with President Vladimir Putin. The two leaders reportedly travelled together to the summit venue, signaling a strong diplomatic rapport.

India’s Ambassador to Russia, Vinay Kumar, emphasized that India will continue to source oil based on its national interest, stating, “We will buy from wherever we get the best deal”.

With global energy markets in flux and geopolitical tensions rising, Russia’s offer is expected to bolster India’s refining sector and provide relief from high global oil prices.