Page 4 - The Indian EYE 110725

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... >>

www.TheIndianEYE.com