Russian Ural oil trading at biggest discount in India since 2022, sources say

Russian February Ural crude oil cargoes traded near the biggest discount to dated Brent at Indian ports since 2022 amid growing pressure from Western sanctions, two sources said.

Ural oil cargoes for delivery in February traded at a $10 per barrel discount to Brent dated for delivery to Indian ports, a $3-5 per barrel increase from estimates for cargo loading in the autumn months last year and close to the widest discount on record, two sources said.

In late 2025, the US imposed its toughest sanctions yet on Russia’s energy sector, targeting oil majors Lukoil and Rosneft. It also imposed an additional 25% import duty on Indian goods, a move linked to New Delhi’s continued imports of Russian oil.

US Treasury Secretary Scott Besant on Friday hinted at removing additional 25% tariffs on India after a sharp decline in Indian imports of Russian oil.

New Delhi has cut its oil imports from Moscow over the past two months, with more Russian barrels headed to China due to sanctions.

One of the traders said the broader concessions granted could attract additional Indian refiners and help them carry more barrels, but he added New Delhi was exploring alternatives to Urals amid Western pressure.

Indian Oil Corporation, the country’s top refiner, has bought 7 million barrels of oil from including Brazil’s Petrobras for March loading in place of Russian oil, two trade sources familiar with the matter said.

Ural crude has been the main feedstock for Indian refiners since 2023, when Moscow redirected flows to Asia after the EU imposed curbs on Russian energy use.