India to study implications of US sanctions on Russian oil firms

India stated on Thursday that it is studying the implications of the fresh US sanctions on two Russian oil companies. New Delhi reaffirmed that its energy decisions will continue to be guided by the imperative of ensuring affordable and reliable supplies for its 1.4 billion citizens.

“We are studying the implications of these sanctions. As we have said before, the decisions that we take naturally take into account the evolving dynamics in the global market,” said MEA spokesperson Randhir Jaiswal. He emphasised that India’s position on the larger question of energy sourcing is well known.

“We are guided by the imperative to secure affordable energy from diverse sources to meet the energy security requirements of 1.4 billion people,” the MEA official said. Jaiswal further stated that New Delhi will “make its own assessment” of the implications of the American sanctions on Russian energy firms.

“We will have to wait and see what sort of implications they are going to have on us,” he added.

The US announced sweeping sanctions against Rosneft and Lukoil, Russia’s two biggest oil producers, marking a sharp escalation in its pressure campaign over Moscow’s ongoing war in Ukraine. The move led to a nearly 3 per cent spike in global oil prices. Both firms have extensive international operations in oil exploration, refining, and distribution.

Despite the sanctions, state-run Indian Oil Corporation (IOC) – India’s largest refiner – has made it clear that it will not stop buying Russian crude oil, as long as its purchases remain compliant with the new restrictions. “We are absolutely not going to discontinue buying Russian crude as long as we are complying with sanctions. Russian crude is not sanctioned. It is the entities and the shipping lines that face sanctions. If somebody comes to me with a non-sanctioned entity, the price cap is being complied with, and the shipping is okay, then I will continue to buy it,” IOC Director (Finance) Anuj Jain said after the company’s quarterly results.

Other Indian refiners are likely to adopt a similar approach, industry sources indicated, since the restrictions target specific Russian companies rather than the oil itself.

Regarding the broader state of India-US ties, especially in reference to US Senator Marco Rubio’s comments that Washington’s ties with Pakistan are not at the expense of US relations with India, Jaiswal described the India-US relationship as a “comprehensive global strategic partnership”. He noted that discussions to finalise a bilateral trade deal are ongoing.

“Both sides continue to hold discussions. For any further update, I would refer you to the Ministry of Commerce,” he said.

On the potential visit of Russian President Vladimir Putin to India, the spokesperson said the India-Russia relationship remained an “important and multifaceted” one. “Both sides are working to further enhance engagement in several areas – economic, space, technology, and trade,” he added.