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    COVER STORY                                                       NOVEMBER 07, 2025        |  The Indian Eye                    4

                                                   TRUMP SANCTIONS

                               BALANCING

                OIL & POLITICS

               Caught between US sanctions, volatile markets, and its own surging energy needs,

               India is reshaping its energy policy — prioritizing affordable fuel, building its own
                                           shipping fleet, and asserting its independence

            OUR BUREAU

            New Delhi / Washington, DC / Moscow
               ndia’s energy story has always
               been inseparable from its eco-
            Inomic ambitions. With the
            world’s  fastest-growing  major  econ-
            omy and a population of 1.4 billion,
            India’s development relies heavily on
            affordable and stable fuel supplies.
            Nearly 88 percent of its crude oil and
            more than half of its natural gas are
            imported, making global energy mar-
            kets both a lifeline and a vulnerabil-
            ity. The import bill for crude alone
            crossed USD 150 billion in 2024–25
            — a number that directly shapes in-
            flation, the fiscal deficit, and growth
            projections. For New Delhi, energy
            security is not just an economic con-
            cern but a strategic imperative.
                That is why the latest round of
            U.S. sanctions on Russia’s top oil
            firms, Rosneft and Lukoil, has placed
            India in a complicated position.
            Washington’s move to squeeze Mos-
            cow’s oil revenues — and by exten-
            sion, its war chest for Ukraine — has
            forced India to recalibrate without        With his peace talks with Russian President Vladimir Putin going nowhere, Donald Trump has decided to penalize Russia
            conceding ground. Ministry of Ex-                                     by sanctioning its oil revenue (File photo)
            ternal Affairs spokesperson Randhir
            Jaiswal was unambiguous: India’s   and insurance networks have already   listed Russian energy giants, it quietly   meanwhile, has publicly praised In-
            oil-purchase decisions will “contin-  disrupted  some  trade  flows.  Sever-  granted India a six-month exemption   dia for “being very good” in reducing
            ue to be guided by the needs of our   al Indian refiners have paused deals   from sanctions linked to Iran’s Cha-  purchases of Russian oil while also
            1.4 billion citizens and by market dy-  with Russian suppliers now under   bahar Port project — a crucial trade   acknowledging that energy realities
            namics.” Discounted Russian crude   sanction,  though  officials  insist  that   gateway to Afghanistan and Central   limit  how far  such  cuts  can  go. His
            has been crucial in cushioning India   diversification — not disengagement   Asia. The waiver was a nod to India’s   comments during the APEC sum-
            from global price shocks since 2022,   — remains the plan.          geoeconomic importance and its role   mit in Busan reflected Washington’s
            and despite Western pressure, New                                   in stabilizing regional supply chains.   dual strategy: isolating Moscow while
            Delhi has made it clear it will act ac-  SANCTIONS AND EXEMPTIONS   “We have been granted an exemp-   keeping New Delhi close. For India,
            cording to its national interests. The                              tion for a six-month period,” Jaiswal   that  balance  is  delicate.  Russia  re-
            United States has so far avoided pe-      ashington’s approach to   confirmed, describing it as part of a   mains an indispensable partner in
            nalizing India directly, recognizing its   India has been one of pres-  broader understanding between the   defense, nuclear energy, and space
            central role in global energy stability,  Wsure mixed with pragma-  two strategic partners.           cooperation, and Russian President
            but secondary sanctions on shipping   tism. Even as the U.S. Treasury black-  U.S. President Donald Trump,   Continued on next page... >>

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