India, the world’s third-largest oil consumer, may soon confront secondary sanctions from the United States due to its substantial imports of Russian oil. As of March 25, 2025, India relies on imports for over 85% of its crude oil, with Russia emerging as its top supplier since the Russia- Ukraine conflict began in 2022. Drawn by discounted rates, India now imports roughly 38-40% of its oil from Russia, a move that has drawn scrutiny amid tightening U.S. sanctions on Moscow’s energy sector.
The U.S. has a history of using secondary sanctions to penalize countries engaging with sanctioned nations like Iran and Venezuela, effectively halting India’s oil trade with those countries by 2021. In January 2025, the Biden administration intensified sanctions on Russia’s oil industry, targeting key players like Gazprom Neft and over 183 tankers. This has disrupted Russia’s oil revenue stream and put pressure on buyers like India. While India insists it only follows UN sanctions—not unilateral ones—its continued purchases of Russian oil, often below the G7’s $60-per-barrel cap, have raised questions about potential U.S. retaliation.
Though no direct sanctions have been imposed on India yet, the risk is palpable. Indian refiners have reduced Russian oil imports to 1.43 million barrels per day in February 2025—the lowest since January 2023—shifting toward Middle Eastern and African suppliers. Meanwhile, Indian banks are using rupee payments to avoid U.S. financial penalties. The situation tests U.S.-India ties, a key strategic partnership. For now, India balances its energy needs with diplomatic caution, but secondary sanctions could loom if the U.S. opts to tighten the screws further.
