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Informist, Thursday, Oct. 23, 2025

 

MUMBAI – The Russian firms sanctioned by the Trump administration late Wednesday account for 60% of the suppliers of crude oil to India from there, said Prashant Vasisht, senior vice president and co-group head of corporate ratings at ICRA, on Thursday. India is the biggest buyer of discounted seaborne Russian crude, importing around 1.8 million barrels of crude per day from there as of late September, according to media reports.
 

The US late Wednesday imposed new sanctions on Russia's two largest oil companies Rosneft and Lukoil in a bid to coax Moscow to sign a peace deal with Kyiv. Oil prices increased nearly 5% following these sanctions on the two companies, which contribute over 5% to global oil output, as per media reports.

 

"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," Vasisht said. "On an annual basis, the replacement by market priced crude would lead to an increase in import bill by less than 2%," he added.

 

Indian companies are expected to cut purchases of Russian oil following these sanctions. "Recalibration of Russian oil imports is ongoing and Reliance will be fully aligned to GOI (Government of India) guidelines," news agency Reuters quoted a spokesperson for Reliance Industries Ltd. as saying.

 

In August, Washington had imposed punitive tariffs on India for its heavy purchases of Russian crude. US President Donald Trump earlier this week claimed that India's Prime Minister Narendra Modi told him India would wind down its purchases of Russian crude. However, New Delhi has not confirmed these claims directly. 

 

Trump has openly called for India to purchase more American oil instead of the Russian variety. "India is a big player in the energy trade. We are big importers of energy from across the world, including from the US. We expect to increase our trade with the US on energy products in the years to come," media reports quoted India's Commerce Minister Piyush Goyal as saying in the US on Sept. 23.  End

 

Reported by Anand JC

Edited by Akul Nishant Akhoury

 

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