Archive · 9 Nov 2025
US Imposes New Sanctions on Indian Oil Imports from Russia
Imagine oil is like toys that countries buy and sell.
India used to buy a lot of oil from Russia, especially when oil prices were very high after a conflict started.
The United States didn't mind this before because they wanted to keep the price of toys (oil) from going up too much.
But now, the price of oil is much lower, like toys are on sale.
So, the United States is telling India, 'You can't buy as many toys (oil) from Russia anymore.'
This is because if Russia sells less oil, and prices go up a little, it won't hurt as much since prices are already low.
India's big companies are starting to listen, and they are looking to buy oil from places like the Middle East and even the US instead.
This is all part of a bigger discussion between the US and India about how they trade things.
The discount on Russian oil is getting bigger, meaning people want to buy it less.
The US has recently imposed new sanctions on India's purchases of Russian oil.
India has become a significant importer of Russian oil since the Russia-Ukraine conflict, with about one-third of its imports coming from Russia last month.
These new sanctions are expected to reduce oil imports from Russia, with major refiner Reliance Industries agreeing to stop Russian oil imports.
The price discount for Russian oil has increased, indicating a drop in demand compared to benchmarks like Brent Crude and WTI.
The US shifted its policy due to lower global oil prices, believing that reduced Russian oil supply will have less negative impact compared to when prices were high.
- Who
- United States, India, Reliance Industries, Russian oil suppliers
- What
- The US has imposed fresh sanctions on Indian purchases of Russian oil, leading to a decrease in these imports and a widening discount for Russian oil.
- When
- The sanctions were imposed last month, with evidence of their effect seen by November 6. The US previously encouraged these imports before the Russia-Ukraine conflict when oil prices were high.
- Where
- Primarily concerns trade and oil markets between the US and India, with implications for global oil prices.
- Why
- The US has changed its approach due to lower oil prices. With current prices near $60/barrel, the US believes disruptions and price spikes from reduced Russian oil supply will have less impact. The sanctions are part of ongoing trade agreement talks between the US and India.
- Indian Oil Imports from Russia (Previous Month)
- Approximately one third of India's oil imports
- Russian Oil Discount (October 1)
- 6% below Brent Crude, 1% below WTI
- Russian Oil Discount (November 6)
- 11% below Brent Crude, 5% below WTI
- Brent Crude Price Change
- Down 3%
- WTI Price Change
- Down 4%
- Russian Oil Price Change
- Down 8%
- Oil Prices Before Russia-Ukraine Conflict
- Around $90/barrel
- Oil Prices During High Point (March 2022)
- $122/barrel
- Current Oil Prices
- Closer to $60/barrel
Sources
Oil Notches Second Weekly Loss Amid Sanctions, Looming Surplus
Why a ship carrying Russian oil shifted its cargo off Mumbai’s coast
Bulgaria moves to prevent shutdown of its only oil refinery ahead of US sanctions
Hungary’s waiver from US sanctions on Russia energy is indefinite, minister says
