by Tim Zadorozhnyy
August 8, 2025
The Kyiv Independent
Russian oil companies are redirecting shipments of Urals crude from India to China after U.S. President Donald Trump imposed new tariffs on New Delhi over energy cooperation with Moscow, Bloomberg reported on Aug. 9.
Bloomberg, citing undisclosed traders familiar with the matter, wrote that barrels of Urals oil are now being offered at a discount to both state-owned and private Chinese refineries.
The deliveries are scheduled for October from Russia’s western ports, and prices have been cut by $1 per barrel.
The move follows Trump’s Aug. 6 executive order imposing a 25% tariff on Indian imports. The White House said the measure responds to India’s continued purchase of Russian oil and weapons despite the ongoing war in Ukraine. An earlier 25% tariff, effective from Aug. 1, had already increased pressure on Indian buyers.
Bloomberg’s sources said the discounted offers are being made by traders linked to the Kremlin, including Litasco, the main trading arm of Russian oil giant Lukoil.
Until now, India had become one of the largest buyers of Russian seaborne crude. Following Russia’s full-scale invasion of Ukraine in 2022, Indian imports of Russian oil surged more than 20-fold, reaching over 2 million barrels per day. At the start of 2022, Russian oil made up just 0.2% of India’s energy mix.
That trend reversed after Trump’s latest tariff threat. According to Reuters, Indian state-owned refiners began halting Russian oil purchases. Bloomberg reported that the Indian government has instructed oil firms to prepare alternative supply plans.
Alexandra Filippenko, an American studies expert, previously said that although New Delhi has kept its ties with Russia, U.S. influence is still much more significant. “The American market is, of course, very important for India — far more important than Russia, and far more important than cheap Russian oil,” she told the Kyiv Independent.
Despite China’s claims of neutrality in the war, Beijing has emerged as a crucial lifeline for Russia, providing dual-use technology while continuing to buy oil.
Washington has warned that, if Russia does not halt its war, further purchases could trigger punitive measures, including tariffs of up to 100% on Chinese exports to the U.S.
Trump, who had promised to secure a Ukraine-Russia peace deal within 24 hours of taking office, has grown increasingly impatient with what he calls Moscow’s delays in peace talks.
The new tariffs are part of a broader effort to squeeze Russia’s oil revenues, which account for roughly one-third of its federal budget and are vital to funding its war.
Tim Zadorozhnyy is a news editor at The Kyiv Independent. Based in Warsaw, he is pursuing studies in International Relations, focusing on European Studies. Tim began his career at a local television channel in Odesa. After moving to Warsaw, he joined the Belarusian opposition media outlet NEXTA, starting as a news anchor and later advancing to the position of managing editor.