U.S. Sanctions Russian Oil Majors Over Ukraine, Prompting Jitters in India and China

The United States has announced a new round of sanctions targeting several major Russian oil companies over Moscow’s ongoing war in Ukraine, raising concerns among key energy importers India and China, both of which rely heavily on discounted Russian crude.

The U.S. Treasury Department said the measures are aimed at curbing Russia’s revenue streams that continue to fund its military operations. The sanctions are expected to restrict access to Western financial systems and technology for some of Russia’s largest state-backed energy firms, including Rosneft and Lukoil.

Energy analysts say the move could disrupt oil trade routes and complicate payment systems for Asian buyers. India and China currently Russia’s biggest crude customers have expressed concern about potential ripple effects on supply stability and payment mechanisms, particularly as global oil prices remain volatile.

Officials in New Delhi said they are monitoring the situation closely to ensure energy security is not jeopardized. Beijing, meanwhile, criticized the new sanctions, calling them “unilateral measures” that risk destabilizing global energy markets.

The sanctions mark one of Washington’s strongest moves yet to squeeze Russia’s energy sector since the start of the invasion in 2022. Western nations hope the new restrictions will further pressure Moscow economically while avoiding a shock to global oil supply.