The Gulf News front page reported that U.S. sanctions on Russian oil companies have hit India.
Due to concerns about a reduction in Russian oil supply, Brent crude prices rose by 5%.
The two major Russian oil producers, Rosneft PISC and Lukoil PJSC, now face comprehensive U.S. sanctions, which put the daily oil exports of about 3.1 million barrels from Russia at risk, almost half of Russia's total oil exports.
In the first nine months of 2025, India imported about 1.7 million barrels per day of Russian crude oil. Major buyers such as Reliance Industries Limited have long-term supply agreements with Rosneft.
For Indian refiners, these sanctions have brought a significant supply shock. In the first nine months of 2025, India imported about 1.7 million barrels per day of Russian crude oil. Major buyers such as Reliance Industries Limited have long-term supply agreements with Rosneft, and are currently weighing the impact.
Sanctions include asset freezes and transaction bans on Rosneft and Lukoil, with a compliance grace period set for November 21, 2025. Institutions trading with these companies face potential secondary sanctions.
Due to concerns about a reduction in Russian oil supply, Brent crude prices rose by about 5%. Rosneft produced about 3.3 million barrels per day in 2024 (31% of Russia's total production), and Lukoil produced 1.6 million barrels per day (15%). The total export volume of 3.1 million barrels per day accounts for about 3% of global production. Due to such concentrated supply, even moderate supply disruptions can trigger chain reactions in the global market.
In the short term, tightening of Russian supplies may push up global fuel prices. Indian refiners face a choice: stop directly purchasing from the large sanctioned Russian oil companies or purchase indirectly through intermediaries, which will increase costs and complexity. This shift could also lead India to turn back to OPEC+ or Middle Eastern oil sources.
India's reliance on oil imports remains high: its oil consumption reached nearly 4.84 million barrels per day in 2024, heavily dependent on foreign crude oil. After 2022, due to significant discounts, Russian oil became particularly attractive, causing India's oil imports from Russia to rise from almost zero to record levels.
Analysts said that these sanctions indicate that entities dealing with sanctioned companies may be restricted from entering the U.S. financial system, and China has also heard similar messages. As Russian oil supply may decrease, refiners may need to turn to the Middle East or Africa to purchase oil, which may be more costly and require adjustments to refining configurations.
Original: www.toutiao.com/article/1846821531678720/
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