The fresh sanctions announced by the United States on Russia’s two largest oil companies, Rosneft and Lukoil, are expected to raise India’s crude oil import bill by around 2%, according to industry experts.
Analysts noted that the two companies are among the world’s major crude exporters, together supplying around 4 to 5 million barrels per day globally. For India—whose dependence on cheaper Russian crude has risen significantly over the past three years—these two firms account for about 60% of Russian oil supplies.
"The sanctions by the US on certain Russian crude oil producers are likely to impact the purchases by India as these suppliers accounted for about 60% of the volumes purchased. While India can substitute the purchases from Russia with suppliers from the Middle East and other geographies, the import bill for crude oil would increase. On an annual basis the replacement by market priced crude would lead to an increase in import bill by less than 2%,” said Prashant Vasisht, Senior Vice President and Co-Group Head, Corporate Ratings, ICRA Ltd.
India currently imports around 1 million barrels per day (mbpd) of crude oil from Russia, of which approximately 1 mbpd comes from Rosneft alone. With the sanctions in place, India, which meets about 85% of its crude requirement through imports, will have to explore alternative suppliers to meet its energy needs.
US President Donald Trump on Thursday announced sanctions on Rosneft and Lukoil, describing the move as part of efforts to pressure Moscow into negotiating a peace deal in Ukraine. The announcement came a day after Trump said a planned meeting with Russian President Vladimir Putin in Budapest would be postponed indefinitely.
The development follows similar actions by the United Kingdom, which sanctioned the same two Russian oil giants earlier in the week. The European Union has also approved its 19th package of sanctions against Russia, including a ban on imports of Russian liquefied natural gas (LNG) starting January 2027.
The US has also urged Japan, another major buyer of Russian LNG, to halt its energy imports from Russia.
President Trump had earlier claimed that Prime Minister Narendra Modi assured him that India was “not going to buy much oil from Russia” and wanted to see an end to the Russia-Ukraine war. However, India’s Ministry of External Affairs (MEA) denied any such assurance.
So far, the Indian government has not issued any formal directive to oil marketing companies (OMCs) to reduce imports from Russia. However, industry executives acknowledge that purchases have declined in recent months.
State-run oil firms such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) have already begun talks with national oil companies in the Middle East and Africa for long-term supply contracts starting in 2026.
India has faced increasing pressure from the US and the EU over its continued imports of discounted Russian crude, which Western nations argue help finance Moscow’s war in Ukraine. In retaliation, the Trump administration has imposed 50% tariffs (including an additional 25%) on select Indian goods.
According to September data from commodities analytics firm Kpler, India marginally reduced its imports of Russian crude that month, though Russia remained India’s top supplier. Imports fell by 0.16 mbpd compared to the average for the first eight months of 2025.
From 1.67 mbpd in January, imports dropped to 1.48 mbpd in February, rebounded to 1.87 mbpd in March, 1.96 mbpd in April, and 1.87 mbpd in May. The peak came in June, at about 2.1 mbpd, before dipping to 1.6 mbpd in July due to refinery maintenance and narrowing discounts. Imports rose again to nearly 2 mbpd in August.
