POLITICS

India to posture affirmatively for FTA talks with the US; cuts to Russian oil imports expected

The United States has announced sweeping sanctions on Rosneft and Lukoil, Russia’s top oil producers, marking one of Washington’s strongest economic offensives since the Ukraine conflict began. The sanctions freeze assets linked to the two firms and prohibit global companies from engaging with them, with a November 21 deadline for contracts to be wound down. The move aims to choke off key funding channels sustaining the Kremlin’s war effort and puts pressure on major Asian buyers, particularly India and China, which have been leading purchasers of discounted Russian crude since 2022.

Top Indian refiners are now preparing to cut Russian oil imports sharply, with private and state-run companies reviewing contracts to ensure compliance. India had been sourcing nearly a third of its crude from Russia, but the new restrictions are expected to drive those volumes down significantly, possibly to near zero in the coming months.

The decision is viewed as a strategic recalibration aligning New Delhi more closely with U.S. policy at a crucial stage in bilateral economic talks. Commerce Minister Piyush Goyal recently confirmed that negotiations for a free trade agreement with the U.S. are “progressing in a cordial atmosphere,” signaling optimism that removing Russian oil as a sticking point could help seal the long-awaited trade pact by the end of 2025.