February 11, 2025 – U.S. sanctions on Russia are not expected to impact Moscow’s oil trade with India, according to Pavel Sorokin, Russia’s first deputy energy minister. Speaking at the India Energy Week conference on Tuesday, Sorokin emphasized that it is too early to assess the full impact of the latest restrictions.
Following Western sanctions imposed after Russia’s invasion of Ukraine in 2022, India emerged as the top buyer of Russian sea-borne oil sold at a discount. However, recent U.S. sanctions targeting Russia’s oil supply chain have caused tanker freight rates to soar, with some buyers and ports in China and India avoiding sanctioned ships.
“Our relationship with India is based on economic pragmatism,” Sorokin stated. “We believe energy trade shouldn’t be hindered by any politics.”
Sorokin added that more time is needed to evaluate the impact of the latest sanctions. “You cannot judge about the situation on the basis of a few weeks of data. More time is needed to assess these things, but we believe that constructive relationships will continue to be successful.”
Despite a decline in Russian oil supply to India in December and January, Indian Oil Corp (IOC), the country’s top refiner, remains optimistic. IOC’s Chairman A S Sahney reported that the company is buying Russian crude without involving sanctioned entities.
Sorokin criticized the sanctions as illegal and harmful to the global economy, stating, “Tens of billions of dollars have been taken away from developing economies, and they have also increased the cost of capital for everyone in this industry.”
He emphasized that Russia possesses the technology necessary to develop its resources and will continue to be a major global player in the energy sector.