US Tariffs Push India Out, China Increases Russian Oil Purchases

China took advantage of the opportunity to purchase Russian Urals oil at a discount, increasing purchases that India had refused due to rising US trade tariffs, The Gaze reports, citing Bloomberg.

Although China is the largest importer of Russian oil, it usually receives supplies from the Far East of the country. However, in August, Chinese refineries purchased nearly 75,000 barrels of Urals per day — almost twice the 2025 average — while Indian imports fell to 400,000 barrels per day from an average of 1.18 million.

“Generally, Chinese refineries are in a comfortable position to keep taking Russian oil for now, in contrast to Indian refiners,” said Jianan Sun, an analyst at Energy Aspects Ltd. Urals.

The global oil market is currently focused on changes in global flows due to US President Donald Trump's diplomatic efforts to end the war in Ukraine. 

However, recent events have shown different approaches to India and China. For example, Trump said he would not raise tariffs on Chinese goods due to Beijing's purchases of Russian oil, citing progress in negotiations with Russian President Vladimir Putin. In contrast, White House trade adviser Peter Navarro described India's purchases as “opportunistic and deeply destructive.”

Experts emphasize that Trump is acting pragmatically: pressure on India worked, but exerting similar pressure on China is unlikely to be possible without serious consequences for himself.

Chinese refineries have significantly increased their purchases of Russian Urals crude oil, likely acquiring 10 to 15 shipments for delivery in October and November, exceeding their usual consumption volume. Kpler experts predict that China may purchase even more cargoes if Urals prices remain attractive.

According to traders, Urals was recently offered at a premium of only $1 per barrel compared to Dated Brent. At least two tankers carrying 1 million barrels each are currently waiting off the coast of China.

Meanwhile, Indian refiners are holding off on buying Urals for now, although they're looking at offers.

Excess Russian barrels “have to be removed, and those barrels can only be removed by China into storage,” said Sahdev, head of commodity markets at Rystad Energy A/S. “Without China buying, the Russian crude may start discounting more to get new buyers.”

As The Gaze informed earlier, the Main Intelligence Directorate of the Ministry of Defense of Ukraine (HUR) has released data on the activities of 42 ships involved in the transportation of sanctioned Russian and Iranian oil, stolen Ukrainian grain and coal from temporarily occupied territories