Cheaper Russian oil, more S-400s for India even as Trump escalates tariff pressure
The offer comes amid a 10–20% projected rise in Russia’s oil exports to India next month, or an additional 150,000 to 300,000 barrels per day.
- Sep 3, 2025,
- Updated Sep 3, 2025 8:06 AM IST
India is reportedly negotiating fresh discounts on Russian oil and a new round of S-400 missile system deliveries, deepening its strategic partnership with Moscow even as the US escalates pressure through harsh tariffs and public rebukes.
According to Reuters, Moscow is now offering India barrels of Urals crude at $3–$4 below Brent prices for shipments loading in late September and October—a steeper discount than the $1 price gap seen in July. The offer comes amid a 10–20% projected rise in Russia’s oil exports to India next month, or an additional 150,000 to 300,000 barrels per day.
Simultaneously, negotiations are underway to expand the 2018 $5.5 billion S-400 missile deal, under which India has already received three units. Russia is set to deliver the remaining two in 2026 and 2027, and is now discussing further deliveries. “There is potential to expand our cooperation in this area as well,” said Dmitry Shugayev, head of Russia’s Federal Service for Military-Technical Cooperation.
The dual-track deal—cheap energy and advanced weapons—comes at a politically charged moment. Last month, President Donald Trump imposed 50% tariffs on Indian imports, half of which he directly linked to India’s Russian oil trade. The Trump administration has accused New Delhi of profiteering, with Treasury Secretary Scott Bessent recently calling India’s arbitrage “unacceptable.”
Peter Navarro, Trump’s trade advisor, doubled down, branding India an “oil money laundromat.” Trump himself posted that India “has always bought a vast majority of their military equipment from Russia” and slammed its energy ties amid the war in Ukraine.
Despite mounting US pressure, Prime Minister Narendra Modi and President Vladimir Putin appeared united at the Shanghai Cooperation Organisation summit this week, exchanging warm words and reaffirming bilateral ties. The S-400 systems, notably, were used in Operation Sindoor—India’s military action against terror targets in Pakistan and POK earlier this year.
India is reportedly negotiating fresh discounts on Russian oil and a new round of S-400 missile system deliveries, deepening its strategic partnership with Moscow even as the US escalates pressure through harsh tariffs and public rebukes.
According to Reuters, Moscow is now offering India barrels of Urals crude at $3–$4 below Brent prices for shipments loading in late September and October—a steeper discount than the $1 price gap seen in July. The offer comes amid a 10–20% projected rise in Russia’s oil exports to India next month, or an additional 150,000 to 300,000 barrels per day.
Simultaneously, negotiations are underway to expand the 2018 $5.5 billion S-400 missile deal, under which India has already received three units. Russia is set to deliver the remaining two in 2026 and 2027, and is now discussing further deliveries. “There is potential to expand our cooperation in this area as well,” said Dmitry Shugayev, head of Russia’s Federal Service for Military-Technical Cooperation.
The dual-track deal—cheap energy and advanced weapons—comes at a politically charged moment. Last month, President Donald Trump imposed 50% tariffs on Indian imports, half of which he directly linked to India’s Russian oil trade. The Trump administration has accused New Delhi of profiteering, with Treasury Secretary Scott Bessent recently calling India’s arbitrage “unacceptable.”
Peter Navarro, Trump’s trade advisor, doubled down, branding India an “oil money laundromat.” Trump himself posted that India “has always bought a vast majority of their military equipment from Russia” and slammed its energy ties amid the war in Ukraine.
Despite mounting US pressure, Prime Minister Narendra Modi and President Vladimir Putin appeared united at the Shanghai Cooperation Organisation summit this week, exchanging warm words and reaffirming bilateral ties. The S-400 systems, notably, were used in Operation Sindoor—India’s military action against terror targets in Pakistan and POK earlier this year.