Impact of US Sanctions on Russian Oil Companies
- India will begin curbing direct oil imports from Russia starting in December. The move comes after new US sanctions on major Russian energy firms Rosneft and Lukoil begin on October 21. These curbs could seriously affect trade between India and Russia.
- More than half of India's refineries currently run on Russian oil. Russian oil shipments to India are set to fall from December, said maritime intelligence firm Kepler, but analysts expect imports to bounce back early in 2026 via intermediaries and alternative trading routes.
Changes in Import Plans by Indian Refineries
Reliance Industries, which has a long-term supply agreement with Rosneft, may also halt imports of Russian oil. MRPL and HPCL-Mittal Energy already confirmed that they are scrapping near-term imports. The three together accounted for over half of India’s Russian oil imports in the first half of 2025.
Exceptions and Expected Trends
Nayara Energy, which is partially owned by Rosneft, also reportedly will continue its oil imports. In the period before the sanctions, India imported 1.6-1.8 million barrels per day from Russia, a volume that has been slipping since October 21 because of the tightening trade restrictions.
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