The United States has announced sweeping new sanctions on Russia’s two largest oil producers — Rosneft and Lukoil — in a move that could reshape global energy flows and put pressure on key buyers like India and China.
US President Donald Trump unveiled the sanctions Thursday, calling them a “tremendous” step to cripple the Kremlin’s ability to fund its war in Ukraine. “Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine,” said Treasury Secretary Scott Bessent.
The measures come just a week after Britain imposed similar sanctions and as the European Union approved its 19th package of restrictions, which includes a ban on Russian liquefied natural gas imports. Washington has also urged Japan, one of Russia’s biggest LNG buyers, to phase out its purchases.
The US said it is ready to take additional action if Moscow refuses to agree to a ceasefire. The sanctions aim to strike at the heart of Russia’s economy, where oil and gas revenues account for roughly one-quarter of the federal budget.
For India, the world’s third-largest oil consumer, the new restrictions pose a complex challenge. Since Russia’s 2022 invasion of Ukraine, India has emerged as the biggest buyer of discounted Russian crude, importing around 1.7 million barrels per day in the first nine months of this year. The new US sanctions have prompted Indian refiners to quietly review their contracts and supply chains to ensure they are not directly linked to Rosneft or Lukoil, according to a Reuters report citing industry sources.
Indian Oil Corp, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery are reportedly examining shipping and trade documents to verify that their crude supplies do not originate from the sanctioned entities. These refiners typically buy Russian oil through intermediaries rather than directly from producers, but the heightened scrutiny reflects growing caution in New Delhi.
President Trump, meanwhile, claimed that Prime Minister Narendra Modi assured him that India “was not going to buy much oil from Russia,” aligning with Washington’s efforts to pressure Moscow. However, Indian officials have maintained that their energy policy is guided by domestic priorities — ensuring stable supplies and shielding consumers from global price volatility.
Experts say the real impact of the sanctions will depend on whether the US enforces secondary sanctions targeting intermediaries, traders, and financial institutions in countries like China, the UAE, and India. Edward Fishman, a former US State Department sanctions official, said, “The significance of these sanctions depends on follow-through. Will the US actively threaten secondary sanctions on the Chinese banks, UAE traders, and Indian refineries that transact with Rosneft or Lukoil?”
Moscow has dismissed the sanctions as counterproductive. Russian foreign ministry spokeswoman Maria Zakharova said the measures would hurt diplomatic efforts to end the war. “Our country has developed a strong immunity to Western restrictions and will continue to confidently develop its economic potential,” she said.
With energy trade worth billions at stake, India finds itself balancing economic pragmatism with geopolitical sensitivity. As one of Russia’s largest remaining oil customers, New Delhi’s next steps will be closely watched by Washington, Moscow, and global markets alike.