Russian oil exports to India are expected to rise in September as producers cut prices to sell crude that cannot be processed because Russian refineries were damaged by Ukrainian drone attacks. India has become the largest destination for Russian oil displaced by Western sanctions, allowing Indian refiners to benefit from cheaper crude. The U.S. government raised tariffs on Indian imports to 50%, while New Delhi seeks talks and Prime Minister Narendra Modi pursues diplomatic outreach including a meeting with President Vladimir Putin. Traders estimate Indian purchases will increase by 150,000-300,000 barrels per day amid refinery outages and export constraints that would hurt Russian revenues without India.
Russian oil exports to India are set to rise in September, traders said, as producers cut prices to sell more crude because they cannot process as much in refineries that were damaged by Ukrainian drone attacks on energy infrastructure. India has become the biggest buyer of Russian oil supplies that were displaced by Western sanctions after Moscow invaded Ukraine in 2022.
But the purchases have drawn condemnation from the government of U.S. President Donald Trump, which increased U.S. tariffs on Indian imports to 50% on Wednesday. New Delhi says it is relying on talks to try to resolve Trump's additional tariffs, but Prime Minister Narendra Modi has also embarked on a tour to develop diplomatic ties elsewhere, including meeting Russian President Vladimir Putin.
U.S. officials have accused India of profiteering from discounted Russian oil, while Indian officials have accused the West of double standards because the European Union and the U.S. still buy Russian goods worth billions of dollars. The Indian oil ministry did not immediately respond to a request for comment on Thursday. Without India, Russia would struggle to maintain exports at existing levels, and that would cut the oil export revenues that finance the Kremlin's budget and Russia's continued war in Ukraine.
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