US sanctions on Russian oil giants Rosneft and Lukoil are set to drastically cut Russian crude supplies to India, which has relied on Russia for 36% of its oil imports since 2023, Bloomberg reported. The sanctions, requiring transactions to end by November 21, challenge the long-standing economic benefits between the two nations and force Indian refiners to seek alternative sources, mainly from the Middle East. While China may continue to absorb Russian oil through government-backed pipelines, India faces pressure to comply amid concerns over secondary penalties from the US. The move marks a major shift in US policy aiming to restrict Kremlin revenues while disrupting Russiaโs oil trade with key Asian markets. They write:
Flows of Russian oil to major Indian refiners โ a boon for both countriesโ economies over the past three years โ are expected to fall to near zero after the US imposed sanctions on crude giantsย Rosneft PJSCย andย Lukoil PJSC.
Senior executives at the processors said the blacklisting of Russiaโs largest producers would make it all but impossible for that supply to continue. […]
So far this year, India has taken 36% of its oil imports from Russia, according to analytics firm Kpler, a major irritant for President Donald Trump and a hurdle to trade talks afterย punitive tariffsย came into effect in August. Those negotiations are at a crunch point, although Indian Prime Minister Narendra Modi isย set to skip a regional summit in Kuala Lumpur next week, where he had been expected to meet his US counterpart. […]
State refinersย Indian Oil Corp.,ย Bharat Petroleum Corp.,ย Hindustan Petroleum Corp. Ltd.ย andย Mangalore Refinery & Petrochemicals Ltd.ย didnโt immediately respond to Bloomberg queries. They typically buy crude on the spot market.ย Reliance Industries Ltd., which has a long-term contract with Rosneft, also didnโt immediately respond to a request for comment.
The Indian government has yet to comment on the US measures. Its oil ministry didnโt reply to an email seeking comment.
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