The Urals crude discounts have widened sharply, hitting nearly the largest gap against dated Brent since 2022. According to two trading sources, February-loading Urals cargoes sold for delivery to Indian ports at a discount of $10 per barrel—up by $3–$5 from autumn 2025 levels. This marks one of the steepest discounts on record for Russia’s flagship export blend.
This deepening discount comes amid mounting pressure from Western sanctions. In late 2025, the U.S. rolled out its toughest-ever measures against Russia’s energy sector. It specifically targeted oil giants Lukoil and Rosneft. At the same time, Washington imposed an extra 25% tariff on Indian goods, explicitly linking the move to New Delhi’s continued purchases of Russian oil.
However, recent developments suggest a shift. U.S. Treasury Secretary Scott Bessent recently signaled that these additional tariffs could be lifted. Why? Because India has significantly cut its Russian oil imports over the past two months. As a result, more Russian barrels are now flowing to China instead.
Even so, the steep Urals crude discounts may still tempt some Indian refiners. One trader noted that the low prices could help place more barrels with Indian buyers. But he also added a caveat: New Delhi is actively seeking alternatives to Urals due to ongoing Western pressure.
For example, Indian Oil Corp (IOC)—the country’s top refiner—has already secured 7 million barrels of crude for March loading from non-Russian sources. Trade sources confirm part of this volume comes from Brazil’s Petrobras. This move clearly aims to replace Russian supply.
It’s worth noting that Urals became a mainstay for Indian refiners starting in 2023. That’s when Moscow rerouted its oil exports to Asia after the European Union banned most Russian energy imports. For years, the discounted barrels boosted refining margins in India.
Now, however, geopolitical risks are reshaping that calculus. While the Urals crude discounts remain attractive financially, the political and trade costs are rising. As a result, India appears to be balancing short-term savings against long-term strategic alignment with Western partners.
In short, the era of easy Russian oil for India may be cooling—even if the price looks tempting.
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