Cheaper Russian Crude & More S-400 Missiles Likely for India as US Pressure Mounts
India could soon secure discounted Russian oil along with additional S-400 missile defence systems, even as frictions grow with Washington over New Delhi’s continued energy and defence partnership with Moscow, according to recent reports.
Quoting market statistics, Reuters said that Russia's Urals crude is currently available at $3–$4 per barrel below Brent for cargo lined up in late September and October. Last week, the discount was $2.50, and in July, it was about $1, indicating Moscow's readiness to increase supplies to India. Russian exports of crude to India are likely to rise by 10–20% in September, about 150,000–300,000 barrels per day higher than in August.
On the defense side, Russia is also shifting to increase military equipment deliveries. Dmitry Shugayev, the head of Russia's Federal Service for Military-Technical Cooperation, said that the last two S-400 systems under the 2018 $5.5 billion deal will be handed over by 2026 and 2027. India has already delivered three systems, which were surprisingly deployed during Operation Sindoor in May, India's attack on terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir. Shugayev suggested both countries are looking at the potential for increased cooperation beyond the existing agreement.
This follows as relations with Washington are strained. US President Donald Trump said in August that he was imposing 50% tariffs on Indian imports, half of which were attributed to India's increased Russian oil imports. Trump charged New Delhi with "profiteering" by purchasing discounted crude and selling it, while Treasury Secretary Scott Bessent took it so far as to label India's role as an "oil money laundromat." Trump also attacked India's use of Russian weapons and energy on Truth Social, labeling it as troublesome when the West is pressuring nations to distance themselves from Moscow amid the Ukraine war.
The statements came after Prime Minister Narendra Modi and Russian President Vladimir Putin met at the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China. The two leaders welcomed the robustness of their strategic alliance, with Putin characterizing Modi as a "dear friend" and appreciating the "dynamic development" in bilateral relations.
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