The US finally imposed the first sanctions of President Donald Trump’s second term on Russia, targeting Rosneft and Lukoil, Moscow’s two largest oil producers, with the Treasury giving companies until November 21 to wind down transactions.
The White House framed the move as pressure for a ceasefire in its war with Ukraine, as Trump posts the move on Truth Social with the headline “Treasury Sanctions Major Russian Oil Companies, Calls on Moscow to Immediately Agree to Ceasefire.”
Brent futures rose 4.92% following the news. Sources said Chinese state oil majors suspended seaborne purchases of Russian crude due to sanctions risk.
The sanctions package lands after Treasury Secretary Scott Bessent previewed a substantial pickup in Russia sanctions, saying the announcement would come after the market close or the next morning. Market participants flagged fertilizers after Bessent’s comments, noting Russia is the number one US supplier of urea and UAN and number two in potash.
India, the largest buyer of discounted Russian crude since 2022, began recalibrating intake. Reports cited plans by Indian refiners to sharply cut imports from Rosneft and Lukoil to comply. Reliance Industries, which holds a long-term deal near 500,000 barrels per day with Rosneft, said, “recalibration of Russian oil imports is ongoing and Reliance will be fully aligned to GOI guidelines.” State refiners Indian Oil, Bharat Petroleum, and Hindustan Petroleum are reviewing trade documents to avoid direct exposure to the sanctioned producers.
India imported about 1.7 million barrels per day of Russian crude in the first nine months of 2025, and Rosneft plus Lukoil supplied roughly 60% of those barrels, according to industry estimates.
“It all depends on banks,” an Indian refinery official said, highlighting financing channels as the key chokepoint. “If banks clear payments then we will buy. Otherwise my intake will be zero.”
Information for this story was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
