India to Benefit from Discounted Russian Oil, Expanded S-400 Deliveries Amid US Tariff Dispute: Report
India may soon see advantages from reduced prices on Russian crude oil and additional S-400 air defense systems, even as tensions with the United States over energy and arms dealings with Moscow continue to escalate, according to recent media reports.
As reported by Reuters, the cost of Russia's Urals crude is currently $3–$4 lower than Brent per barrel on a delivered basis, with offers available for shipments scheduled for late September and October. This marks a decrease from $2.50 a barrel last week and $1 in July, indicating Russia's intention to expand its supplies to India. In September, Russian exports to India are anticipated to increase by 10–20%, translating to an additional 150,000–300,000 barrels per day compared to August.
In the realm of defense cooperation, Russia is negotiating with India to enhance the delivery of the S-400 missile defense system. Dmitry Shugayev, the head of Russia’s Federal Service for Military-Technical Cooperation, revealed to TASS that the final two units are scheduled to arrive in 2026 and 2027. India had agreed to a $5.5 billion contract for five S-400 units in 2018, with three already delivered. This system was pivotal during Operation Sindoor in May, an Indian military operation targeting terrorist sites in Pakistan and Pakistan-occupied Kashmir.
Shugayev indicated potential for further collaboration, stating: “There is potential to expand our cooperation in this area as well. For now, we are in the negotiation stage.”
These developments occur amidst deteriorating relations with Washington. Last month, U.S. President Donald Trump imposed significant 50% tariffs on Indian imports, attributing half of these to India’s ongoing purchase of Russian oil. Trump accused India of "profiteering" from inexpensive Russian crude and reselling it for profit. U.S. Treasury Secretary Scott Bessent criticized India’s oil trade as "unacceptable," alleging that New Delhi has become an "oil money laundromat."
In August, Trump directly criticized India on Truth Social, citing its reliance on Russian military equipment and energy: “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.”
These reports emerged shortly after a meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China. Both leaders praised the strong strategic partnership, with Putin referring to Modi as his "dear friend" and characterizing relations as "developing dynamically."
