New US Sanctions on Russian Oil Majors, India Says ‘Studying Implications’

India's Ministry of External Affairs on Thursday responded to the latest sanctions on Russian oil companies by the United States. The MEA said that it is "studying the implications of the move." On the US sanctions imposed on Russian oil companies, MEA spokesperson Randhir Jaiswal said, "Regarding US sanctions on Russian oil companies, we are studying the implications of these sanctions.""As we have said before, the decisions we take naturally take into account the evolving dynamics in the global market. Our position on the larger question of energy sourcing is well known to you. In this endeavour, we are guided by the imperative to secure affordable energy from diverse sources to meet the energy security requirements and needs of 1.4 billion

people," the MEA spokesperson asserted. The US government, on October 22, imposed sanctions on Russia's two largest crude oil producers, Rosneft and Lukoil, barring all American entities and individuals from conducting business with them.

Non-US firms could also face penalties if found dealing with the sanctioned companies or their subsidiaries, it said. The US Treasury Department said all existing transactions involving Rosneft and Lukoil must be wound down by November 21.Russia currently supplies nearly a third of India's crude imports, averaging around 1.7 million barrels per day (mbd) in 2025, of which approximately 1.2 mbd came directly from Rosneft and Lukoil. Most of these volumes were bought by private refiners, Reliance Industries Ltd and Nayara Energy, with smaller allocations to state-owned refiners.

Indian refiners are likely to ramp up crude oil purchases from the Middle East, Latin America and the US to compensate for reduced imports from Russia, following Washington's sanctions on two major Russian producers, reported news agency PTI citing sources and analysts earlier this week.Russian crude flows are expected to remain in the 1.6–1.8 mbd range until November 21, but direct volumes from Rosneft and Lukoil are likely to decline thereafter, as Indian refiners seek to avoid any risk of US sanctions, said Sumit Ritolia, Lead Research Analyst (Refining and Modelling) at Kpler.To compensate for reduced direct Russian inflows, Indian refiners are expected to increase procurement from the Middle East, Brazil, Latin America, West Africa, Canada, and the United States. "However, higher freight costs could erode arbitrage opportunities and limit large-scale substitution", he added.