Recent developments have led to a significant widening of discounts on Russian oil, particularly affecting its sales in Asia. Major refiners in India and China have reduced their purchases following the imposition of new U.S. sanctions targeting prominent Russian oil companies like Lukoil and Rosneft. As a result, the price gap for Russia's flagship Urals crude has increased to about $4 per barrel below Brent, marking the steepest discount seen in a year. This situation is critical as it threatens to diminish Russia's oil revenue, which is essential for funding its budget. Analysts predict that India's total imports of Russian oil for December will drop sharply, further straining Moscow's finances. The sanctions have created a divided market, with non-sanctioned oil fetching premiums while sanctioned cargoes are sold at steep discounts, complicating the landscape for Russian oil exports.