Deepest discount in two years: Russia offers cheaper Urals crude to Indian refiners 

Russian Urals crude is being offered to Indian refiners at the steepest discount in at least two years, Bloomberg reported on Monday. The shift comes as major Indian buyers, including Reliance Industries, have scaled back or halted Russian oil imports to comply with tightening Western restrictions.

The US sanctions on top Russian producers Rosneft PJSC and Lukoil PJSC have disrupted the oil trade that had boomed since 2022. 

According to the report, Urals cargoes for December loading and January arrival are being offered at discounts of up to $7 a barrel to Dated Brent on a delivered basis - more than double the previous discount of around $3 per barrel before sanctions took effect last week. 

Only about a fifth of the available cargoes are being marketed by non-sanctioned sellers, limiting options for Indian refiners that want to avoid sanctions exposure.

Indian refiners had largely paused new purchases of Russian barrels scheduled to arrive after the sanctions kicked in, the report said, but the deeper discounts have prompted some buyers to reopen discussions, provided the cargoes come from non-blacklisted entities. 

The latest US measures — adding Rosneft and Lukoil to earlier curbs on Gazprom Neft PJSC and Surgutneftegas PJSC — have reduced access to compliant Russian supply and forced refiners to seek alternatives from the Middle East and other regions.

The Urals blend is exported from Russia's western ports and has been the workhorse grade for Indian refiners since 2022, when Moscow began offering steep price incentives following its invasion of Ukraine and redirection of flows away from Europe.

Reliance halts Russian crude at export refinery

Last Thursday, Reliance Industries informed that it had halted Russian oil imports at its export-only refinery in Jamnagar to comply with European Union sanctions targeting fuels refined from Russian crude. India's largest oil refiner confirmed Thursday that it stopped processing Russian crude at its Special Economic Zone (SEZ) refinery effective November 20. 

The move comes ahead of stricter EU sanctions set to take effect in January 2026 and affects the company’s exports to the EU, US, and other key markets.

"All product exports from the SEZ refinery will be obtained from non-Russian crude oil starting December 1," a spokesperson said, adding the shift was completed early to ensure full compliance. The company will now redirect any Russian barrels arriving after November 20 to its domestic-focused refinery within the same Jamnagar complex. 

Reliance had a long-term deal with Rosneft to buy up to 500,000 barrels per day of crude, but is expected to wind down those purchases following the Trump administration's latest sanctions on Rosneft and Lukoil.