The US President Donald Trump is pressuring India to stop buying oil from Russia. He also imposed sanctions on Russian oil companies Rosneft and Lukoil on 22 October .
Earlier, the European Union (EU) had also completely banned imports of Russian LNG. Britain also imposed sanctions on Rosneft and Lukoil last week.
Government companies are also checking shipments
Government companies like Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum are also reviewing their trade documents. They are checking bills for shipments arriving after 21 November, to avoid direct supply from Rosneft or Lukoil.
A person familiar with the discussions between New Delhi and local refiners said that the Indian government has privately asked companies to start reducing imports of Russian oil.
Sanctions on Russian companies effective from 21 November
The US Treasury has given time until 21 November 2025. During this period, companies will have to terminate transactions with Rosneft and Lukoil. If not complied with, there could be fines, blacklisting or trade restrictions.
Petrol, diesel prices may increase due to expensive crude oil
Russian oil was cheap, now oil will have to be taken from alternative sources like the Middle East or America, which are expensive. Russian oil had a large share in India's total imports, so refining costs will increase and this may also affect petrol-diesel prices.
India has been buying Russian oil since the Russia-Ukraine war
Russian oil became cheaper after Russia's attack on Ukraine in 2022. India is the world's third-largest oil importer, and Russian oil met its needs cheaply. But now due to sanctions, it may have to reduce Russian oil purchases.
Indian government data shows that since 2022, the country has purchased discounted Russian oil worth approximately $140 billion. This was processed into petrol and diesel by Reliance and other companies and sold in domestic and international markets.
Trump Says - India Will Stop Buying Russian Oil
Speaking to reporters at the White House on Wednesday, 22 October, Trump said, "Buying oil is a process that cannot be stopped immediately, but by the end of the year they will bring it to zero. Just yesterday I had a discussion about this with Prime Minister Modi."
Trump Had Imposed 25% Extra Tariff on India
Earlier in August, Trump imposed an additional 25% tariff on India for buying oil from Russia. Since August 27, India faces a total tariff of 50%. This includes 25% reciprocal tariff and 25% penalty for purchasing oil from Russia.
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