### New US Sanctions on Russian Oil Majors: Implications for India and Global Markets The United States has intensified its economic pressure on Russia by imposing sanctions on its two largest crude oil producers, Rosneft and Lukoil, effective October 22, 2025. This move is part of a broader strategy to weaken Russia's financial capabilities amid the ongoing conflict in Ukraine. The sanctions prohibit all American entities and individuals from engaging in business with these companies, prompting immediate reactions from global markets, particularly in India, which has been a significant importer of Russian oil. ### Structure of the Response 1. **Overview of US Sanctions** - The US Department of the Treasury's Office of Foreign Assets Control (OFAC) announced the sanctions targeting Rosneft and Lukoil, aiming to disrupt Russia's energy revenue streams [https://www.jdsupra.com/legalnews/ofac-announces-new-round-of-sanctions-7182000]. 2. **Impact on Indian Refiners** - Indian refiners, including major players like Reliance Industries and Indian Oil, have paused new orders for Russian crude oil due to uncertainties surrounding payment and supply chains [https://www.financialexpress.com/business/industry-indian-refiners-pause-new-russian-oil-orders-after-sanctions-report-4023870]. 3. **Lukoil's Response** - In response to the sanctions, Lukoil has announced plans to sell its international assets, indicating a significant shift in its operational strategy [https://www.rt.com/business/627072-us-sanctions-lukoil-business]. 4. **Global Market Reactions** - The sanctions have led to a ripple effect in global oil markets, with Indian and Chinese companies reassessing their energy procurement strategies as they navigate the implications of the sanctions [https://mezha.net/eng/bukvy/us-sanctions-on-russian-oil-shake-india-china-energy-trade]. ### Supporting Evidence and Data - **Sanction Details**: The sanctions specifically target Rosneft and Lukoil, which are responsible for a substantial portion of Russia's oil production. The US aims to cut off their access to international markets [https://www.jdsupra.com/legalnews/recent-sanctions-actions-by-the-united-7997092]. - **Indian Refiners' Actions**: Reports indicate that Indian refiners have halted new orders and are exploring alternative sources for crude oil, reflecting the immediate impact of the sanctions on their operations [https://www.timesnownews.com/business-economy/economy/us-sanctions-jitters-indian-refiners-hit-pause-on-russian-oil-orders-await-clarity-report-article-153064657]. - **Lukoil's Asset Sales**: Lukoil's decision to divest its international assets is a direct consequence of the sanctions, highlighting the financial strain imposed by the US measures [https://www.devdiscourse.com/article/business/3675633-lukoil-sells-international-assets-amid-us-sanctions]. ### Summary of Findings 1. **US Sanctions**: The US has imposed significant sanctions on Russian oil giants Rosneft and Lukoil, aiming to disrupt their operations and financial stability amid the Ukraine conflict [https://www.jdsupra.com/legalnews/ofac-announces-new-round-of-sanctions-7182000]. 2. **Impact on India**: Indian refiners are responding cautiously, pausing new orders for Russian oil and seeking alternative supplies as they await further guidance from the government [https://www.financialexpress.com/business/industry-indian-refiners-pause-new-russian-oil-orders-after-sanctions-report-4023870]. 3. **Lukoil's Strategic Shift**: Lukoil is actively seeking buyers for its international assets, indicating a significant operational shift in response to the sanctions [https://www.rt.com/business/627072-us-sanctions-lukoil-business]. 4. **Global Market Dynamics**: The sanctions are reshaping energy trade dynamics, particularly for countries like India and China, which have been major consumers of Russian oil [https://mezha.net/eng/bukvy/us-sanctions-on-russian-oil-shake-india-china-energy-trade]. In conclusion, the recent US sanctions on Russian oil producers are poised to have far-reaching implications for global energy markets, particularly affecting countries like India that have relied heavily on Russian crude. The situation remains fluid as stakeholders navigate the evolving landscape.