India may get discounted Russian oil and additional S-400 missile systems

India could soon import Russian oil at discounted rates and receive additional S-400 surface-to-air missile systems, Reuters reported on Tuesday.

The price of Urals crude is currently $3–$4 cheaper per barrel than Brent on a delivered basis, up from around $2.50 last week and $1 in July. These offers are reportedly for cargoes scheduled for late September and October.

On the defence front, Moscow and New Delhi are negotiating an increase in S-400 deliveries. Russia is expected to deliver the final two units under a $5.5 billion 2018 deal in 2026 and 2027. Three of the five units have already been delivered. The S-400 systems were notably used in Operation Sindoor, India’s May military action targeting terrorist infrastructure in Pakistan and POK. Dmitry Shugayev, head of Russia’s Federal Service for Military-Technical Cooperation, confirmed negotiations for expanded deliveries are ongoing.

The reports come amid heightened US scrutiny over India’s trade with Russia. In August, US President Donald Trump imposed 50% tariffs on Indian imports, partly in response to New Delhi’s continued Russian oil purchases, which reportedly surged after Russia’s invasion of Ukraine. Key US officials have accused India of profiteering through oil reselling.

The latest developments follow Prime Minister Narendra Modi’s meeting with Russian President Vladimir Putin in Tianjin, China, during the SCO Summit, where both leaders hailed strong bilateral ties.