US sanctions force India to reconsider oil imports from Rosneft and Lukoil

Indian refineries plan to significantly reduce their imports of Russian oil after the US imposed new sanctions on Rosneft and Lukoil. These sanctions—the first in President Donald Trump's second term—are intended to limit Russia's oil revenues, which Moscow uses to finance the war in Ukraine.

According to sources at the Reuters news agency, India's largest importer of Russian oil, Reliance Industries, is considering reducing or completely halting its purchases. The measures are set to take effect on November 21, and Indian state-owned refineries are already checking whether their supplies come directly from sanctioned companies.

Although most transactions are conducted through intermediaries, the risk of violating sanctions is forcing refineries to be particularly cautious. Reliance has a long-term agreement with Rosneft to supply 500,000 barrels per day.

The issue of Russian oil is a key problem for the US president in the protracted trade talks with India. Half of his 50 percent tariffs on Indian goods are considered retaliation for these purchases.

After Russia's invasion of Ukraine in 2022, India became the largest buyer of discounted Russian oil transported by ship. In the first nine months of this year, the country imported around 1.7 million barrels per day.

(reuters, max)