U.S. issues caution to India regarding potential sanctions stemming from oil transactions with Russia
The European Union (EU) has been tightening its grip on Russian oil imports, implementing measures such as bans on refined products made from Russian crude processed in third countries, dynamic oil price caps, and significant enforcement actions. However, the EU has shown reluctance to impose full-blown secondary sanctions, unlike the United States.
In its 18th sanctions package, the EU introduces strong compliance and enforcement rules. These include banning refined oil products from Russian crude processed outside Russia (including in India) starting January 2026, expanding maritime restrictions, and targeting enablers like traders and shippers in non-EU jurisdictions (including India). Yet, the EU stops short of adopting secondary sanctions equivalent to those imposed by the U.S., mainly due to political and unanimity challenges among member states.
The EU focuses more on structural restrictions targeting Russia's war economy overall, emphasizing enforcement and fine-tuning of existing measures rather than adding additional punitive actions against third countries. This approach is in stark contrast to the U.S., which remains the strongest advocate and enforcer of secondary sanctions.
The ongoing situation may evolve as enforcement mechanisms improve or geopolitical pressures increase. However, as of mid-2025, the EU's approach remains more restrained compared to the U.S. in this regard.
The potential action in unison, as suggested by the push for Secondary Sanctions, may be influenced by a pattern of strong rhetoric paired with selective enforcement. The favorable pricing and refinery compatibility of Russian oil are key factors driving Indian buyers' continued purchases.
Indian refiners are processing more Russian oil than before, despite the geopolitical risks associated with these purchases. The US has been pushing for European nations to join Secondary Sanctions, but the EU's stance of continuing Russian oil imports is reinforced by the Ministry of External Affairs' assertion that the tariffs are unfair and represent a double standard, given the larger value of European trade with Russia compared to India's.
The US strategy towards Russia's oil exports aims to push down the logistics of Moscow's energy exports, indirectly impacting countries that rely heavily on Russian oil. This strategy resembles the maximum pressure model used with Iran. The long-term goal is to squeeze Russia's key customers, including India, to reduce trade volumes and impact war financing.
India's position is central in this US strategy. The US Treasury Secretary has pushed for European nations to align with sanctions against India's energy ties with Russia. The success of this strategy remains uncertain, with the potential for coordinated, sustained effort or a mix of unilateral moves and rhetorical sparring.
Scott Bessent's criticism towards European continued imports of refined fuels from India and India's use of Russian crude implies that sanctions' effectiveness depends on their weakest link. The impact of accelerated sanctions could be uneven, directly affecting countries with supply chains around Russian oil.
The Ministry of External Affairs in India has stated that the proposed tariffs are "unfair" and highlight a double standard. As of now, India's crude oil imports from Russia account for approximately a third of its total imports, significantly higher than before the war. In August alone, Indian refiners processed 1.8 million barrels per day of Russian oil, surpassing June's volumes.
This news article provides an overview of the EU's cautious approach to secondary sanctions on Russian oil imports and the potential impact on the transatlantic alliance. The EU's strategy, while aligning with the U.S. in tightening sanctions on Russian oil imports and curtailing indirect flows via countries like India, is unlikely to fully align with the U.S. in consistently enforcing robust secondary sanctions against Indian imports of Russian oil in the immediate future. The EU prefers a multilayered compliance and enforcement strategy focused on structural impact rather than direct secondary sanctions on third-party importers.
- The EU's strategy, while aligning with the US in tightening sanctions on Russian oil imports, is unlikely to fully adopt the US's approach of enforcing robust secondary sanctions against third-party importers like India in the immediate future.
- The Ministry of External Affairs in India asserts that the proposed tariffs on Russian oil imports are "unfair" and represent a double standard, given the larger value of European trade with Russia compared to India's.
- The ongoing EU strategy is more focused on structural restrictions targeting Russia's war economy and enforcement of existing measures, rather than adopting the US's strategy of secondary sanctions against countries like India.
- Indian refiners are continuing to process more Russian oil than before, despite the geopolitical risks and the US's push for European nations to join in imposing secondary sanctions on India's energy ties with Russia.
