Moscow: Russia has extended a major energy concession to India by offering crude oil at discounted rates, in a move that could further reshape global trade alignments. Following the Shanghai summit, Moscow announced price cuts of up to $4 per barrel, with India set to import nearly 300,000 barrels of crude oil per day throughout September, according to reports.
The development comes just days after Washington imposed a steep 50 percent import duty on India as punishment for continuing oil purchases from Russia. US President Donald Trump alleged that Moscow was channeling revenue from these sales, including those to India, into financing its war effort in Ukraine.
At the Shanghai summit, Prime Minister Narendra Modi defended India’s position, stressing New Delhi’s long-standing ties with Moscow. Modi also held bilateral discussions with Chinese President Xi Jinping, signaling India’s intent to balance its relationships amid mounting global pressure.
Meanwhile, US Treasury Secretary Scott Besant has sought to ease tensions, suggesting the tariff dispute could still be resolved diplomatically. In an interview with Fox News, Besant emphasized that India, as the world’s largest democracy, has natural affinities with Washington rather than with Moscow or Beijing. However, he was openly critical of India’s continued purchase of Russian oil and its visible camaraderie with Presidents Vladimir Putin and Xi Jinping during the Shanghai gathering.
Besant described the trilateral display at the summit as “a demonstration” of shifting power blocs and urged both Washington and New Delhi to mend their differences swiftly. “The problems between the two great countries of the world, India and the US, must be resolved as soon as possible to build a stronger foundation for cooperation,” he remarked.
The competing signals Russia’s energy incentives, US punitive tariffs, and India’s balancing diplomacy highlight the strategic crossroads at which New Delhi finds itself. As global power rivalries intensify, India’s choices on oil imports may determine not only its economic resilience but also its long-term geopolitical positioning.