Russia selling oil at premium as Hormuz disruption tightens global supply

Russia is now selling its oil without discounts and at a premium on some trade routes as the Middle East conflict tightens global energy markets, Deputy Prime Minister Alexander Novak said on March 26.

Novak told reporters that demand for Russian energy resources remained high, driven by a broader supply deficit on world markets, local paper Vedomosti reported

"Today, when there is a deficit on the market, our oil and petroleum products are in demand, and as we can see, discounts have fallen, and on some routes there is now even a premium," Novak said.

He noted that logistics costs had risen simultaneously, linked to the situation in the Strait of Hormuz where part of the tanker fleet has faced operational restrictions.

"As far as buyer premiums are concerned, we have moved today from a discount to either a zero discount or even partially to a premium," Novak said.

The remarks mark a significant shift from the position Russia faced following Western sanctions in 2022, when Moscow was forced to offer steep discounts to secure buyers for its crude, particularly in Asian markets.

Novak also said Russia's unemployment rate remained at a historic low of 2.2%, while acknowledging persistent labour shortages in the domestic market which he said were being kept under control.

Prices have fallen slightly this week amid speculation that Iran and the US might launch peace negotiations soon, and Urals crude is now trading at $105 on March 27. 

Earlier, Reuters estimated that Russia’s oil and gas revenues could jump by around 70% in April from March amid rising global prices, reaching their highest monthly level since October 2025. 

Bloomberg reported on March 26 that Indian refiners have bought around 60mn barrels of Russian oil for delivery next month. The shipments were said to have been booked at premiums of $5 to $15 a barrel to Brent.