Just hours after Washington announced new sanctions on Russia’s two largest oil companies — Rosneft and Lukoil — Indian refiners began pulling back. According to Reuters, Reliance Industries, India’s top buyer of Russian crude and a conglomerate run by billionaire Mukesh Ambani, plans to scale back or even stop Russian oil imports altogether to comply with the sanctions.
India’s state-run refiners, including Indian Oil and Bharat Petroleum Corp, are also cutting ties. Both are reportedly working to ensure that none of their shipments come directly from Rosneft or Lukoil — a serious blow to two companies responsible for roughly half of Russia’s oil exports, according to RBC Capital Markets.
That’s no small shift. India has been one of the few remaining major buyers of Russian crude since Western sanctions tightened in 2022. Its retreat marks a significant win for U.S. policy — proof that Washington’s pressure campaign is beginning to choke off the flow of funds propping up Vladimir Putin’s regime.
For years, critics said sanctions couldn’t truly work against a resource-rich power like Russia. But the Trump administration’s targeted approach — focusing on the energy giants that fund Moscow’s war machine — is already forcing uncomfortable choices in global markets. India, once defiant in its neutrality, now faces the reality that doing business with sanctioned Russian firms risks more than it’s worth.
Of course, this kind of disruption comes with economic trade-offs. As Moscow’s oil supply is further restricted, global prices could rise, creating competition for non-Russian crude. But while short-term price hikes are possible, the long-term gain is clear: undermining Russia’s ability to finance its aggression and reasserting American leverage in global energy markets.
Helima Croft of RBC Capital Markets acknowledged that “prior to this point, US policy had been designed to avoid a serious Russian supply disruption.” Yet this new phase marks a deliberate escalation — one that tests the balance between energy stability and geopolitical strength.
The difference this time is intent. The Trump administration isn’t just managing crises — it’s shaping them to America’s advantage. For too long, Washington’s foreign policy establishment treated energy dependence as an unavoidable weakness. Now, the U.S. is using its economic power strategically, standing firm against authoritarian regimes that exploit global trade for political gain.
If these early moves are any indication, Moscow is in for a painful reckoning — and America’s energy leadership is once again setting the global agenda.
