India Reassesses Russian Oil Deals After Trump’s New Sanctions Hit Lukoil

Indian state oil refiners have started reviewing their oil contracts with Russia after Washington imposed a new round of sanctions on Russian companies, including Lukoil. According to Reuters, the reviews aim to ensure that no direct purchases are being made from entities under U.S. restrictions.

Indian Refineries Scrutinize Contracts to Avoid Sanction Risks

The checks are being conducted by Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp, and Mangalore Refinery and Petrochemicals. A trading source told the agency that Indian state refiners “rarely buy crude directly from sanctioned Russian producers,” as most purchases are made through intermediaries.

Analysts note that while the situation will not cause an immediate halt in supplies, the new sanctions cast doubt on the sustainability of Russian oil shipments to India. Several refinery representatives said the continuation of imports “may become impossible” under expanded U.S. restrictions.

Washington’s New Measures Target Russian Oil Exports

On October 22, the U.S. Treasury announced sanctions aimed at curbing Russian oil exports. The decision gives companies one month to wind down operations involving blacklisted entities. The United Kingdom introduced similar measures a week earlier.

The U.S. administration believes these sanctions will “accelerate an immediate ceasefire” in the Ukrainian conflict. President Donald Trump said that Russia lacks “serious interest in the peace process” and therefore canceled his planned Budapest summit with President Vladimir Putin.

India Remains Dependent on Russian Oil Discounts

In September, India imported 1.6 million barrels of Russian oil per day, representing about 36% of its total crude imports. Experts say it is unrealistic to expect India to abandon Russian oil entirely. Moscow continues to offer crude at a steep discount that cannot be matched elsewhere.

Russia Dismisses Sanctions as Counterproductive

Maria Zakharova, spokesperson for the Russian Foreign Ministry, called the new U.S. sanctions a “counterproductive move” that will not bring peace closer. She urged the current American administration not to repeat the mistakes of its predecessors, stressing that Russia has already developed immunity to Western sanctions and will continue its economic growth.

Kremlin spokesman Dmitry Peskov echoed this position, emphasizing that Russia’s economy has adapted to long-term restrictions.

“We have lived under a huge number of sanctions for quite a while, and our economy continues to function despite them. So yes, we have developed a certain immunity,” Peskov said.