US Sanctions Impact Russian Oil Exports

Published By DPRJ Universal | Published on Tuesday, 28 October 2025

The US has imposed sanctions on Russia's largest oil companies, Rosneft and Lukoil, affecting their operations worldwide. India and China must navigate these sanctions while maintaining their energy security. Initial adherence to sanctions is seen, but analysts predict workarounds involving middlemen and a 'shadow fleet' of tankers will continue Russian oil exports.

The U.S. government has designated Rosneft and Lukoil, along with their subsidiaries, under sanctions due to Russia's role in the Ukraine conflict. This move has immediate implications for global oil markets, particularly affecting India and China, which import significant amounts of Russian oil. Despite initial compliance, analysts believe that workarounds using third-party buyers and a 'shadow fleet' of tankers will continue to enable Russian oil exports. India faces a dilemma balancing its energy needs with strategic ties to the U.S., while China navigates its geopolitical partnership with Russia. The sanctions create financial risks for non-compliant firms, potentially impacting their access to U.S. financial markets.