India Demanded That Russia Increase Oil Discounts Fivefold
- 11.09.2025, 11:23
Because of the increased risks of trading.
Indian importers of Russian crude are demanding bigger discounts from sellers because of rising trade risks.
It was reported by Reuters.
The buyers said the discount should widen to about $10 a barrel to the Brent price to meet a price ceiling. Banks have tightened checks because of disagreements between U.S. and EU policy on Russian oil. By comparison, the discounts in September were only $2 to $3 a barrel.
Some Russian sellers said the Indian demands were too high. They said some of the October shipments could go to China, resulting in reduced volumes for India.
According to a source familiar with the shipment schedule, Russian crude supplies to India will be about 1.4 million bpd in October. For comparison, it was 1.5 million barrels in August and 1.6 million barrels in September.
Final figures will be known after the negotiations are finalized in the next two weeks. At the same time, even a $10 discount will not allow the price to fall below the new EU and UK ceiling of $47.60 per barrel.
The EU reduced the price ceiling for Russian oil from $60 to $47.60 from October 1. Insurance and transportation services from Western companies are only allowed if that level is met. The US did not support the decision. Last week, Brent was trading at 67 dollars per barrel.
The European Commission intends in the future to achieve agreement on a new price ceiling with all G7 countries. According to a European Commission spokesman, the restriction remains relevant because Western carriers are still involved in the transportation of Russian oil.
"The growing gap in oil sanctions policy will increase confusion for market participants and weaken enforcement of the restrictions," said Tom Boton of consulting firm S-RM.
Russia is actively using the so-called shadow fleet - tankers with Russian connections and insurance arranged domestically. Such shipments are not subject to the price ceiling.
Russian companies have been successfully circumventing price caps since 2022 by using their own fleets or forging documents, traders and analysts say. Weak sanctions controls encourage market participants to ignore bans without fear of punishment.
"Price restrictions will be an obstacle for Russian traders but do not pose a serious threat," said Benjamin Godwin, a partner at consulting firm PRISM Strategic Intelligence. "The US and EU could deal a serious blow to Russia's oil and gas industry, but that would cause severe disruption to the global economy," he added.
The US role and Trump's tariffs
A disagreement between the US and the EU over Russian oil exports to India will lead to a reduction in shipments in October, analysts said. Following Russia's invasion of Ukraine, G7 countries imposed sanctions and banned insurance and sea transportation of oil above a price ceiling.
The restrictions were aimed at reducing Russia's revenues while maintaining supplies to prevent prices from spiking. The scheme effectively incentivized India and China to buy oil at a discount.
But U.S. President Donald Trump has changed his approach. He has demanded that India completely stop buying Russian oil and, having been rebuffed, has raised tariffs on Indian exports to the US to 50%. In this way, Trump is using trade pressure to force Moscow to make peace in Ukraine.
"The coordination of sanctions between the US and other G7 countries has effectively collapsed under the Trump administration," said Energy Aspects' head of geopolitics Richard Bronze.