Russian Urals crude for delivery to Indian ports next month has been sold at its steepest discount to benchmark Brent since 2022, underlining shifting trade flows amid sanctions pressure and India’s efforts to diversify energy imports, Reuters reported.
Industry sources said Urals cargoes for February delivery to India were sold at around $10 per barrel below Brent, a discount that widened by $3–5 per barrel compared with autumn 2025 deliveries and is close to record levels. The sharp markdown reflects weaker demand from Indian refiners following tighter US sanctions on Russian producers.
Urals has been a key feedstock for Indian refiners since 2023, after Russia redirected oil exports to Asia following European Union restrictions on Russian energy. Traders say the current discounts could still attract Indian refiners seeking cheaper crude. However, New Delhi continues to explore alternatives to Russian supplies amid sustained pressure from the United States.
Sources familiar with the matter said Indian Oil Corp (IOC), India’s largest refiner, has bought about 7 million barrels of crude, including volumes from Brazil’s Petrobras, for March delivery as partial replacements for Russian oil.
Since December 2025, after new US sanctions were imposed on Lukoil and Rosneft, India has reduced its Urals imports. In contrast, China has sharply increased purchases of the grade, absorbing a larger share of Russia’s redirected exports.
India’s pullback comes as the country seeks progress on a potential trade agreement with the US, while refiners aim to diversify supply sources amid policy uncertainty. An additional factor has been comments by US Treasury Secretary Scott Bessent, who hinted that a proposed additional 25% US duty on Indian goods could be reconsidered following a marked decline in India’s imports of Russian oil.
According to preliminary Reuters estimates, Russia’s oil and gas revenues may fall by as much as 46% in January, weighed down by lower global oil prices and a stronger ruble, adding further pressure on Moscow’s energy earnings.