India may soon benefit from cheaper Russian crude and additional S-400 air defence systems even as tensions rise with the US over energy and arms trade with Moscow, according to media reports.
A Reuters report noted that Russia’s Urals crude is now priced $3–$4 lower than Brent per barrel on a delivered basis, with offers made for cargoes loading in late September and October. The discount was $2.50 a barrel last week, and just $1 in July, highlighting Russia’s push to expand supplies to India. Russian exports to India in September are expected to rise by 10–20%, or an additional 150,000–300,000 barrels per day, compared to August.
On defence cooperation, Moscow is in talks with New Delhi to expand deliveries of the S-400 missile defence system. Dmitry Shugayev, head of Russia’s Federal Service for Military-Technical Cooperation, told TASS that the final two units are expected to arrive in 2026 and 2027. India had signed a $5.5 billion deal for five S-400 units in 2018, of which three have already been delivered. The system played a key role during Operation Sindoor in May, India’s military action against terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir.
Shugayev also hinted at deeper future cooperation, saying: “There is potential to expand our cooperation in this area as well. For now, we are in the negotiation stage.”
The developments come amid strained ties with Washington. Last month, US President Donald Trump imposed steep 50% tariffs on Indian imports, half of which were linked to India’s continued purchase of Russian oil. Trump accused India of “profiteering” from cheap Russian crude and reselling it for profit. US Treasury Secretary Scott Bessent went further, calling India’s oil trade “unacceptable” and accusing New Delhi of turning into an “oil money laundromat.”
Earlier in August, Trump had directly targeted India on Truth Social, citing its dependence on Russian arms and energy: “They (India) have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to stop the killing in Ukraine.”
The reports surfaced shortly after Prime Minister Narendra Modi and Russian President Vladimir Putin met on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China. Both leaders praised the enduring strategic partnership, with Putin calling Modi his “dear friend” and describing relations as “developing dynamically.”
