India Faces Energy Crisis as U.S. Targets Russian Oil Giants

India is poised for a significant energy challenge following new sanctions imposed by the administration of **Donald Trump** on Russian oil companies **Rosneft** and **Lukoil**. The sanctions, announced on March 6, 2024, could drastically reduce the flow of Russian crude oil to Indian refiners, raising concerns about potential impacts on the country’s energy supply and international oil prices.

According to Bloomberg, unnamed executives from India’s refining industry indicated that major refiners, including **Indian Oil Corporation**, **Bharat Petroleum Corporation**, and **Hindustan Petroleum Corporation**, purchase Russian crude on the spot market. Additionally, **Reliance** has a long-term supply agreement with Rosneft. Currently, Russian crude accounts for approximately one-third of India’s total oil imports, making any supply cut particularly impactful.

The anticipated reduction in supply is expected to drive international oil prices higher. While the extent of the increase remains uncertain, prices have already surged in response to the sanctions. Brent crude rose by over **$2 per barrel** on the news, reflecting immediate market reaction to the potential disruption.

President Trump’s strategy aims to limit Russian oil exports to weaken the country’s financial position, thereby pressuring it to agree to a ceasefire in **Ukraine**. The focus on India is notable, as the country maintains a more favorable relationship with the United States compared to other major buyers of Russian crude, such as **China**. Despite these pressures, Indian officials have repeatedly stated their intention to continue purchasing Russian oil.

Reports from U.S. government sources suggest that Indian buyers are already beginning to scale back their purchases of Russian crude. During a recent statement, President Trump mentioned that **Prime Minister Narendra Modi** had committed to halting these imports, although India has not publicly acknowledged any such agreement.

In stark contrast to these geopolitical tensions, Bloomberg also reported that Russian maritime oil exports have reached their highest levels since early 2023, averaging **3.82 million barrels per day** over the past month. This development occurs despite increasing international pressure on importers to cease their purchases of Russian crude.

As the situation unfolds, both the Indian government and the global oil market will be closely monitoring the impacts of these sanctions. With a significant portion of India’s crude supply potentially at risk, the energy landscape in the region may shift dramatically in the coming weeks.