Russia, the second largest oil exporter globally, is considering its response to U. S. sanctions targeting major oil companies Rosneft and Lukoil, amid the possibility of reduced sales to India, its largest buyer. President Vladimir Putin has been in talks with U. S. President Donald Trump for months about finding a resolution to the ongoing war in Ukraine, but no progress has been made yet.
On October 22, the U. S. Treasury’s Office of Foreign Assets Control imposed sanctions on Rosneft, Lukoil, and their subsidiaries, urging Russia to agree to a ceasefire. Together, these two companies represent about half of Russia’s oil production and over 5% of the global oil supply. Earlier in January, sanctions were enacted against other Russian energy firms, but these did not severely disrupt Russian oil exports. The U. S. has also targeted the vessels and companies involved in transporting Russian oil, with some lawmakers calling for stricter measures.
Indian refiners, such as Reliance Industries, are reportedly looking to reduce or stop importing Russian oil due to increasing U. S. pressure. India purchased 1.9 million barrels per day in the first nine months of 2025, making up 40% of Russia’s total oil exports. Stricter sanctions may force Russia to offer larger discounts to maintain export levels, as oil and gas revenues are crucial for its budget and military efforts in Ukraine.
While halting crude exports is an option for Russia, it could also harm its allies, including China. Other choices include cutting exports of enriched uranium or rare metals, although these would also negatively impact Russia’s economy. Strengthening ties with China for rare-earth cooperation could counter U. S. pressures, given Russia’s substantial reserves.
Russia is a key member of OPEC+, which manages about half of global oil production, and any disruption to its exports could affect the organization’s market strategies. China, another significant buyer of Russian crude, reaffirmed its opposition to unilateral sanctions following the recent U. S. restrictions against Rosneft and Lukoil.
with information from Reuters