U.S. Sanctions on Russian Oil Expire — Will India Halt All Russian Crude Purchases?

U.S. Sanctions on Russian Oil Expire — Will India Halt All Russian Crude Purchases?

U.S. sanctions on two of Russia’s biggest oil companies — Rosneft and Lukoil — imposed during Donald Trump’s presidency, have expired as of 21 November 2025. These sanctions had placed a hard deadline on business dealings and are now lifting, raising major questions for India’s dependence on Russian crude.

Impact on Indian Refineries

• Reliance Industries Limited (RIL), one of India’s largest importers of Russian oil, announced that it has stopped importing Russian crude into its Jamnagar export-oriented refinery from 20 November. Reuters+2India Today+2

• From 1 December, all refined products exported from Jamnagar’s SEZ (Special Economic Zone) facility will be made using non-Russian crude, ensuring compliance with upcoming EU sanctions. India Today+2mint+2

• Any Russian cargoes arriving on or after 20 November will be processed in its Domestic Tariff Area (DTA) refinery instead. India Today

Why India Is Reducing, Not Stopping

• The U.S. Treasury’s Office of Foreign Assets Control (OFAC) had set the 21 November wind-down date, threatening severe penalties for ongoing transactions with the sanctioned oil majors. India Today+2The Times of India+2

• Several major Indian refiners (both public and private) are scrutinising shipping and supply contracts to ensure they are not exposed to U.S. secondary sanctions. The Times of India

• Rather than fully abandon Russian oil, many Indian firms are looking to alternate sources: they’re exploring non-sanctioned Russian producers, more trade via intermediaries, or diversifying toward Middle Eastern crude. The Times of India

Short-Term Shock, Not a Full Stop

• Indian imports from Russia have already dropped sharply: data shows loadings fell to ~982, 000 barrels per day in the first 20 days of November, down from October. The Indian Express+1

• Still, experts believe a complete halt is unlikely: Russian oil may continue flowing through “opaque” or less regulated channels, such as via third-party traders or ship-to-ship transfers. The Times of India

• The U.S. move is expected to dampen Russian oil revenues, but not entirely cut them off. India Today

Economic and Strategic Risks for India

• Replacing cheap Russian crude with more expensive global oil could raise India’s import bill by an estimated $2.7 billion, according to analysts. mint

• But Indian refiners are also under geopolitical pressure: they must balance energy security, costs, and compliance with Western sanctions — a tricky mix given India’s long-term relationship with Russia. The Times of India

Expert Takeaway

Even though the U.S. sanctions have expired, the flow of Russian crude into India is likely to be curtailed, not completely severed. Stakeholders expect more careful, diversified procurement, stronger due diligence, and gradual rebalancing — not an abrupt exit.