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Cheaper Russian oil, more S-400 for India likely amid Trump tariffs: Report
On oil trade, a barrel of the Urals crude is now $3–$4 cheaper to Brent, and Russia may deliver the final two units of the S-400 systems to India, reports said.
India may soon be importing oil from Russia at discounted prices, and will also get more S-400 surface-to-air missile systems from the country, reports said on Tuesday.
A barrel of the Urals crude is now $3–$4 cheaper to Brent on a delivered basis, news agency Reuters reported, citing people who received the offers, meant for cargoes set to load in late September and October. The discount was reportedly around $2.50 a barrel last week, and around $1 in July.
As for the S-400 systems, Moscow and New Delhi are negotiating increased deliveries, and Russia is expected to deliver the final two units to India in 2026 and 2027, the news agency said in another report, citing Dmitry Shugayev, head of Russia's Federal Service for Military-Technical Cooperation. A $5.5 billion deal for the defence systems was signed between India and Russia back in 2018, for five units, three of which had been delivered.
The S-400 air defence systems also played a big role in Operation Sindoor, India's military action against terrorist infrastructure in Pakistan and POK back in May.
"There is potential to expand our cooperation in this area as well. That means new deliveries. For now, we are in the negotiation stage," TASS reportedly quoted Dmitry Shugayev as saying.
Also read: US, Russia discuss energy deal ahead of Trump's 50% tariffs on India over oil trade: Report
The reported offer of cheaper oil and more supply of the S-400 systems from Russia comes at a time when India is facing heat from the US over its oil and arms trade with Moscow.
Last month, US President Donald Trump's 50% tariffs on Indian imports took effect, half of which were for New Delhi continuing its Russian oil trade, which the US officials say saw a significant spike after Ukraine's invasion in 2022.
Reuters had reported last week that Russia's oil supplies to India in September are likely to rise by 10–20% or an additional 150,000 to 300,000 barrels per day, compared to August.
Several key Trump administration officials have targeted India in the recent past for buying oil and arms from Russia, accusing New Delhi of “profiteering” and “making billions” from its reselling of the oil. Indian arbitrage, which is buying cheap oil and reselling it, has just sprung up during the [Ukraine] war. This is just unacceptable," US treasury secretary Scott Bessent said a few days ago.
Earlier in August, Trump had cited India's purchase of military equipment and energy from Russia as he announced the first half of the 50% tariffs on Indian imports. "They (India) have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to stop the killing in Ukraine...," Trump wrote on Truth Social.
The latest reports also follow PM Modi and Russian President Vladimir Putin's meeting in Tianjin, China on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit. While PM Modi hailed the close cooperation between India and Russia, Putin echoed the same sentiment, calling the diplomatic ties "very good". Putin called PM Modi his "dear friend" at the bilateral talks and said relations were developing dynamically.
