India Emerges as Latest Nation to Curb Russian Oil Imports, Citing Secondary Sanctions Risk
NEW DELHI – India, a key purchaser of Russian crude, has significantly reduced its imports of oil from Russia, marking the latest blow to Moscow’s revenue stream and signaling growing concern over potential secondary sanctions. The shift follows increased pressure from the United states, where the threat of penalties for facilitating Russian oil trade has intensified in recent weeks, notably after former President Donald trump publicly advocated for stronger action against nations continuing to fund the Kremlin’s war in Ukraine.
The decline in Indian purchases represents a critical turning point for Russia, wich has increasingly relied on India and China to offset losses in European markets following Western sanctions imposed after the invasion of Ukraine. While India initially ramped up imports of discounted Russian oil,becoming a vital lifeline for the Russian economy,the risk of being cut off from the U.S. financial system is proving a powerful deterrent. This development adds to existing pressures on Russia’s oil sector, including Ukraine’s targeted drone strikes against Russian infrastructure which are disrupting fuel supplies to eastern Russia and Crimea, where rationing has already been implemented and dozens of gas stations have closed.
According to sources familiar with the matter, including a former Lukoil executive, Indian refiners are actively diversifying their crude sources, seeking alternatives from the Middle East and Africa. The Kremlin has responded by restricting exports in an attempt to stabilize domestic fuel supplies, but is currently struggling to find a comprehensive solution to the challenges facing its most vital export industry.
The impact is already visible in Russian export figures. While precise data is closely guarded, analysts note a clear trend of decreasing shipments to India, coinciding with heightened U.S. warnings. The potential for secondary sanctions-penalties imposed on entities doing business with sanctioned parties-has created a chilling effect, prompting Indian companies to prioritize compliance over access to discounted Russian crude.
The situation underscores the effectiveness of the U.S. sanctions strategy, even without direct penalties levied against India. The threat alone is sufficient to reshape global energy flows and further isolate Russia economically. The long-term consequences for Russia’s economy remain uncertain, but the loss of a major trading partner like india will undoubtedly exacerbate the financial strain caused by the ongoing conflict in Ukraine and Western sanctions.
