US sanctions targeting Russia’s two leading oil companies appear to be having far-reaching repercussions across global energy markets, with reports indicating India plans to drastically cut or even stop imports of Russian crude oil altogether. This development highlights Washington’s increasing economic clout and shifting dynamics of international energy flows.
On October 22nd 2025, President Donald Trump issued “tremendous” sanctions against Russian oil giants Rosneft and Lukoil, freezing their US assets and prohibiting American persons and companies from engaging with them in any transactional capacity. As reported by The Guardian.
+1 This move was designed to sever revenue streams supporting Russia’s war machine, along with threats of secondary sanctions against foreign entities who continued doing business with blacklisted firms. For more information visit: NDTv.com
Markets reacted swiftly. Oil prices surged nearly five percent and Brent crude prices reached two-week highs as traders anticipated potential disruptions to supply lines from Russia to major buyers such as India. Reuters.
But perhaps most telling is the response from India.
According to multiple sources cited by Reuters, India’s refiners — both private powerhouse Reliance Industries and various state-owned refiners–are currently reviewing their contracts for Russian crude purchases, to ensure no oil directly comes from Rosneft or Lukoil after November 21 if US sanctions remain in force. Reuters notes.
Reports indicate Indian imports of Russian seaborne crude could decline to near zero by 2025, according to reports.
India, heavily dependent on crude imports and which had turned to Russian oil after Moscow invaded Ukraine at discounted prices as its primary supplier, marked a major strategic change when Russia eventually supplied up to 30-40% of their oil imports at one point.
As India has previously resisted US pressure by prioritising energy security for its population and strategic autonomy, new developments suggest that sanctions could alter India’s calculus. India Today
These developments could have profound ramifications. In one sense this means:
Pressurizing Russia’s War Economy: If India, one of Russia’s major buyers, reduces or stops purchasing oil from them altogether, this would put immense strain on their war economy and could drastically decrease Russia’s oil revenues–an essential financial pillar to their military campaign in Ukraine.
Energy Market Shifts: India is forced to source alternative supplies from other regions or at higher costs in response to reduced Russian crude flows; this may raise fuel prices domestically while simultaneously shrinking refining margins.
Geopolitical Influence: This shift suggests that US sanctions combined with threats of secondary measures have the power to affect behavior beyond direct US-Russia relations; they can affect third-country trade ties as well.
Indian Strategic Balancing: While India remains committed to independent policy making, recent events indicate an apparent shift away from this approach due to accessing global financial systems or pressure from broader sanctions regime. Analysts agree that enforcement of secondary sanctions beyond US jurisdiction will be the true test for India’s independence.
Still, challenges remain. Russia could attempt to divert exports through intermediaries or alternative shipping routes while India must balance energy needs with geopolitical realities. Market analysts warn that while early signs may indicate success for sanctions imposed against Iran and Russia, their long-term effectiveness depends on comprehensive enforcement and global coordination. Reuters provides updates.
As evidenced by India reconsidering one of its major oil supply channels and global energy flows being realigned, recent US sanctions against Rosneft and Lukoil are already having tangible repercussions. Their effects will depend on actions by other buyers as well as Moscow’s ability to adapt under mounting economic pressure; as the war in Ukraine drags on, oil trade will remain an integral front in strategic competition between countries.