India checks Russian oil supplies after US sanctions

Donald Trump is also going to discuss Russian oil trade with Chinese President Xi Jinping

Indian state-owned oil refineries have begun reviewing documents on Russian oil supplies to ensure that the raw materials do not come directly from Rosneft and Lukoil, against which the United States imposed sanctions on October 22.

The inspections are being carried out by Indian Oil Corp, Bharat Petroleum, Hindustan Petroleum and Mangalore Refinery, The Economic Times reported.

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Indian refineries fear interruptions in oil supplies and the consequences of settlements in dollars

Indian refineries typically purchase oil through intermediaries rather than directly from Russian companies to reduce risks. As US restrictions tighten, businesses fear supply disruptions and possible implications for dollar payments.

According to Bloomberg, Indian refinery executives believe that continued imports may become impossible if Washington decides to apply secondary sanctions. At the same time, India remains one of the largest buyers of Russian oil, purchasing up to 40% of the imported volume from Russia.

Russian President Vladimir Putin warned that India's refusal of Russian energy resources would cost it up to $10 billion in losses.

New Delhi has not yet officially commented on the situation, but, according to sources, the government is trying to maintain a balance - not to give up cheap Russian fuel, but not to provoke a trade conflict with the United States, which has already imposed 25 percent duties on Indian goods.

Chinese state-owned companies have suspended purchases of Russian oil after US sanctions

China's largest state-owned oil corporations - PetroChina, Sinopec, CNOOC and Zhenhua Oil - have temporarily suspended purchases of Russian oil supplied by sea. According to sources from Reuters and Bloomberg, the decision was made after the US imposed sanctions against Rosneft and Lukoil.

According to Reuters interlocutors, Chinese companies are afraid of secondary sanctions and intend to refrain from transactions at least in the short term.

Reduced purchases from India and China will hit Russia's income

A decrease in purchases from the two largest buyers of Russian oil could seriously hit Moscow’s income and cause a rise in world energy prices. According to Vortexa Analytics, in the first nine months of 2025, Chinese state-owned companies purchased less than 250 thousand barrels of Russian oil per day, and according to Energy Aspects - about 500 thousand barrels.

As traders note, Rosneft and Lukoil mainly sell oil to China through intermediaries and not directly. However, Sinopec's trading arm, Unipec, completely stopped purchasing Russian oil last week after the UK imposed sanctions on Rosneft, Lukoil and shadow fleet vessels.

Trump intends to discuss purchases of Russian oil by China with Xi Jinping

Trump previously said that he would discuss the issue of Russian oil trade with Chinese President Xi Jinping. At a press conference after a meeting with NATO Secretary General Mark Rutte, the US President noted that he would discuss with Xi ways to end the war in Ukraine “through oil, energy or something else.” Trump expressed confidence that the Chinese leader will be ready to cooperate on this issue.

In addition, Trump hopes that Beijing will be able to convince Vladimir Putin to begin peace negotiations with Ukraine. A meeting between Trump and Xi is scheduled to take place next week in South Korea.

Photo: Indian Oil Corp petrol pump in Kolkata, India, January 17, 2022. Indranil Aditya via Reuters Connect

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