What The Latest US Sanctions On Russia Mean For India’s Oil Imports | Profit Explainer
The US sanctions on Russia’s top oil companies could force India to scale back imports.
US President Donald Trump on Oct. 22 imposed new sanctions on Russia for the first time in his second term. The "tremendous" new sanctions target Russia’s two largest oil companies, Rosneft and Lukoil, in a bid to pressure President Vladimir Putin into ending the war in Ukraine. US Treasury Secretary Scott Bessent said these companies were helping fund the Kremlin’s “war machine.”
According to The New York Times, the sanctions are among the most significant taken against the Russian energy sector since the war began.
Why Is India Impacted By These Sanctions?
India is one of the largest buyers of discounted seaborne Russian crude. The country’s imports reached about 1.7 million barrels per day in the first nine months of 2025, according to a Reuters report. As Indian refiners rely heavily on Russian crude, the sanctions could directly impact their supply chains.
How Are Indian Companies Responding?
Indian refiners are reportedly preparing to sharply curtail imports of Russian oil after the new US sanctions. This move could remove a major hurdle to a trade deal with the United States, the Reuters report added.
Reliance Industries, India’s top buyer of Russian crude, plans to reduce or halt imports, including under its large long-term deal with Rosneft. “Recalibration of Russian oil imports is ongoing and Reliance will be fully aligned to GOI (Government of India) guidelines,” a Reliance Industries spokesman told Reuters.
State-owned refiners such as Indian Oil, Bharat Petroleum and Hindustan Petroleum are reviewing their Russian oil trade documents to ensure no supply comes directly from Rosneft and Lukoil. A refinery source told Reuters, “There will be a massive cut.”
According to Ministry of Oil and Petroleum sources, Indian Oil Marketing Companies (OMC)s procure Russian crude through intermediaries, not directly from the sanctioned firms. Also, the OMCs have not entered into fixed contracts with Rosneft or Lukoil. Moreover, India’s exposure to Russian oil has already declined in recent months, as refiners diversified their import baskets, they added. India's crude imports remain well diversified, ensuring ample supply from other geographies, the sources added.
Could This Affect India-US Trade Negotiations?
India faces 50% tariffs on its exports to the US, with half of those duties in retaliation for Russian oil purchases. By winding down crude imports from Moscow, India could potentially align its tariffs with Asian peers in the context of an ongoing trade deal with the United States, the Reuters report added.
