Chinese and Indian Refiners Move to Cut Russian Oil Imports Amid Intensifying U.S. and EU Sanctions Pressure

Trump Administration Imposes New Sanctions on Russia’s Largest Oil Firms
Washington Urges Beijing and New Delhi to Join in Sanctions Compliance
EU Reaches Agreement on Its 19th Sanctions Package Against Russia

Chinese and Indian oil companies have announced plans to reduce imports of Russian crude, signaling a rift in Moscow’s strategy of redirecting exports to Asia to circumvent Western sanctions. With the European Union (EU) and the United Kingdom joining the United States in targeting Russia’s energy revenues, the Western-led campaign to economically isolate Moscow is now expanding on multiple fronts. The latest measures, aimed squarely at Russia’s key export markets, are expected to deal a significant long-term blow to the country’s economy and energy strategy.

Reliance Says It Will Adjust Russian Oil Purchases

According to Reuters and the Financial Times on the 26th, Washington has asked Beijing and New Delhi to urge domestic companies to reduce imports of Russian crude. President Donald Trump canceled his planned meeting with Russian President Vladimir Putin and announced new sanctions against Rosneft and Lukoil, Russia’s two largest oil producers, citing Moscow’s lack of sincerity in peace negotiations with Ukraine. Under the new measures, all entities in which these companies hold a 50% or greater stake will see their assets frozen.

Following the announcement, Reliance Industries — India’s largest private purchaser of Russian oil — said it would adjust import volumes in accordance with government directives. Reliance had signed a 10-year supply deal with Rosneft in December last year, securing discounted crude shipments. Meanwhile, the Chinese government instructed state-owned oil majors to suspend seaborne imports of Russian crude. PetroChina, Sinopec, and CNOOC have reportedly decided to refrain from Russian crude purchases at least in the short term due to growing sanctions risks.

Washington Tightens Tariff Pressure on Russian Oil Importers

The latest sanctions mark a turning point, as China and India—key markets for Russian crude since the Ukraine invasion—are now joining the sanctions effort. In response to Western embargoes, Moscow had restructured its export routes, pivoting from Europe to Asia. Consequently, the share of Europe in Russia’s oil and condensate exports plunged from 51% in 2020 to 12% in 2024 and just 11% in the first half of 2025, while shipments to Asia surged to fill the gap.

China and India emerged as the main buyers. Last year, China imported a record 108.5 million tons of Russian crude—19.6% of its total oil imports, the highest share from any single country. India, the second-largest buyer, has played a key role in sustaining Moscow’s export pivot. Its imports of Russian crude soared from just 50,000 barrels per day in 2020 to 1.7 million barrels per day in 2024, averaging 1.6 million barrels daily in the first half of this year.

Initially, both Beijing and New Delhi had resisted U.S. pressure, vowing to maintain Russian oil purchases. China’s foreign ministry reiterated that “there are no winners in a tariff war” and that it would adjust energy sourcing “based on national interests and energy security.” However, after the Trump administration moved to enforce secondary sanctions covering shipping, insurance, and logistics, Beijing ultimately agreed to align with Washington. China is now seeking to diversify imports by expanding supplies from Indonesia, Brazil, and other alternative sources.

India, for its part, had continued Russian oil purchases despite tensions with Washington earlier this year. Even after the U.S. imposed unprecedented trade penalties—including reciprocal tariffs of up to 50%—over India’s refusal to open its agricultural and pharmaceutical markets, New Delhi remained a major buyer of discounted Russian crude. But as bilateral trade talks resumed, India shifted course. According to officials, the U.S. proposed a gradual reduction of Russian oil imports as part of tariff negotiations, and India accepted to ease economic frictions.

U.S. and EU Coordinate Joint Sanctions to Maximize Pressure

China and India’s policy reversals were also influenced by new EU measures. On October 22, the EU approved its 19th sanctions package against Russia, including a ban on Russian liquefied natural gas (LNG) imports. This marks the first time since the start of Trump’s second term that Washington and Brussels have acted in close tandem on Russia policy. According to The Wall Street Journal, “U.S. and EU officials have been working intensively over the past month to design the most effective ways to pressure the Russian economy,” adding that “joint sanctions by the U.S. and EU would significantly amplify the impact.”

The United Kingdom, though outside the EU, has joined the effort as well. On October 15, London added Rosneft, Lukoil, and 44 tankers belonging to the so-called “shadow fleet” to its sanctions list. The British government described the two companies as “strategically vital to the Kremlin,” emphasizing that they “play a major role in sustaining Russia’s economy and funding its war in Ukraine.” Earlier this month, the Group of Seven (G7) also announced plans to impose penalties on nations and intermediaries facilitating or expanding Russian oil purchases through indirect channels.

Nevertheless, President Putin has vowed not to yield to Western pressure. He insisted that “Western sanctions will not have a significant impact on the Russian economy,” arguing instead that “it will take time for global energy markets to replace Russian crude.” He added that Moscow had already established “sanctions evasion mechanisms and alternative payment systems,” suggesting that its funding lifelines would not be cut off immediately. The Kremlin stated it is assessing the real impact of the sanctions and remains open to negotiations, with special envoys preparing potential diplomatic channels to Washington.