Russia Reportedly Offers Oil to China at a Discount

Russia is now offering its flagship Urals crude oil to both state-owned and private Chinese refiners at a discounted rate — after India began cutting back on Russian imports due to U.S. tariff threats, Orda.kz reports, citing Bloomberg.

India has been the primary buyer of Urals. That shifted after President Trump signed an executive order imposing an additional 25% tariff on Indian imports, targeting New Delhi for its energy ties with Moscow.  According to Kpler, Russia is still offering Urals crude to Indian buyers at a $5 per barrel discount compared to Brent.

However, analysts expect this pricing trend to persist, driven by Washington’s pressure and tighter EU sanctions.

Chinese refiners traditionally prefer the ESPO crude from Russia’s Far East. Urals crude, shipped from western ports, had seen limited demand due to higher transportation costs.

But with India’s Curtailment of Urals purchases, Chinese traders are reconsidering Urals, now offered roughly $1.50 per barrel cheaper than Brent, down from a previous premium of $2.50.

Meanwhile, analysts at Kpler estimate that Russian export discounts remain significant — Urals deliveries to India still see a markdown of around $4 per barrel versus Brent.