On October 17, U.S. President Donald Trump signed an executive order imposing sanctions on the Russian companies Rosneft and Lukoil. The measure marks one of Washington’s most sweeping attempts to curb Russian oil exports and pressure Moscow through financial channels.
Indian oil refiners are cutting purchases of Russian crude amid new U.S. sanctions, Bloomberg and Reuters reported, citing industry sources. According to them, shipments to India’s largest refineries—including the state-run Indian Oil, Bharat Petroleum, and Hindustan Petroleum—could soon fall to almost zero.
Reliance Industries, a private company and India’s biggest buyer directly dealing with Rosneft, is considering sharply reducing or even halting imports. Although some contracts remain in place, the new U.S. restrictions have made fulfilling them practically impossible, as Indian companies fear being targeted by secondary sanctions.
One Reuters source said there would be “a major reduction,” but supplies would not stop immediately since some cargoes are already en route and will reach the market before their terms expire.
State-owned refineries are reviewing trade documents to eliminate any direct dealings with Rosneft and Lukoil, which were sanctioned under President Donald Trump’s executive order. Even before the restrictions, Indian state companies rarely purchased Russian crude directly, preferring instead to buy through intermediaries on the spot market.
What Do the U.S. Sanctions Include?
Trump’s executive order extends restrictions not only to the parent entities of Rosneft and Lukoil but also to all subsidiaries in which they hold a 50% or greater stake. The document’s annex lists dozens of companies involved in extraction, refining, and transportation, including major refineries and production branches.
As a result, the entire vertical chain of oil and petroleum production and exports for these companies falls under the order. All assets and property interests of Rosneft and Lukoil located in the United States or under U.S. jurisdiction are frozen. Any transactions involving them are prohibited for U.S. citizens and entities, as well as for any dealings processed through the American financial system.
Separately, the Office of Foreign Assets Control (OFAC) warns that foreign banks engaged in significant transactions with sanctioned entities risk being hit with secondary sanctions. These could include bans on maintaining correspondent accounts in the United States, restrictions on access to dollar settlements, and other forms of financial isolation.
It remains unclear, however, how broadly Washington intends to enforce these measures. The executive order emphasizes that the sanctions are tied to the demand for an “immediate ceasefire” in Ukraine and may be reconsidered if the war stops.