India Faces Impact of US Sanctions on Russian Oil Imports
US sanctions on Russian oil giants Rosneft and Lukoil have led to a sharp decline in India's Russian crude imports, forcing Indian refiners to seek alternative suppliers. The measures have increased India's import costs and operational expenses, while New Delhi continues to balance its energy needs with geopolitical pressures.
India's reliance on discounted Russian crude oil, a key part of its energy strategy since 2022, has been challenged by new US sanctions on Rosneft and Lukoil, effective November 21, 2025. These sanctions, combined with a 25% duty on Indian purchases of Russian oil, have prompted a significant drop in imports from Russia. Indian refiners, previously benefiting from steep discounts, are now turning to alternative suppliers such as the US, Saudi Arabia, Iraq, and others. The shift has led to higher crude prices and increased operational costs for Indian refiners. While some companies have cut purchases from sanctioned entities, others are exploring workarounds or continuing to source from unsanctioned Russian suppliers. India's government is prioritizing economic resilience and energy diversification, maintaining a balance between Moscow and Washington. The long-term impact will depend on India's ability to secure alternative supplies and navigate geopolitical pressures.
