US sanctions Rosneft and Lukoil, India rethinks Russian crude imports

The United States on Oct. 23 imposed new sanctions on Russia’s two largest oil producers, Rosneft and Lukoil, prompting major Indian refiners to review their Russian crude purchases and shipping documents as they assess compliance and potential disruptions to supplies. The U.S. Treasury set a Nov. 21 deadline for companies to complete or terminate transactions involving the sanctioned firms, and Indian state and private refiners are scrutinizing bills of lading and contractual chains to ensure shipments arriving after that date are not directly linked to the two producers, trade and refinery officials said.

Refiners including Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum and Mangalore Refinery and Petrochemicals are checking import paperwork, officials said, because they typically source Russian barrels through intermediaries rather than buying directly from Rosneft or Lukoil. Reliance Industries, India’s largest buyer of Russian crude, is reportedly planning to reduce or halt imports, while Nayara Energy, in which Rosneft holds a near 49 percent stake, may be an exception because of its existing ties and operations running on Russian grades.