On October 22, 2025, U.S. President Donald Trump imposed sanctions on Russia’s oil giants, Rosneft and Lukoil. The move has clear geopolitical motives—to remove a major supplier from an oversupplied oil market. Indian oil companies, key buyers of Russian crude, now face pressure to cut imports, undermining India’s energy diversification and shaking global oil markets, including the U.S. economy.

Rex Tillerson, Chairman and CEO of ExxonMobil and Donald Trump’s pick as U.S. Secretary of State, has had a long and fruitful working relationship with Russia. His experience could lubricate US-Russia relations, a development that can only benefit energy buyers like India

India imports 80% of its oil and 80% of the imports are from vulnerable regions. This high-cost, high-risk approach is not sustainable, and the current low price of oil offers India an opportunity to secure its long-term energy needs by taking three concurrent steps: diversifying supply sources, investing in oil fields, and using financial instruments

A fall in oil prices has pushed down the values of oil companies globally, giving India a rare chance to acquire assets cheap and hedge its economy against future increases in energy prices. There are plenty of plum assets to pick from—such as Rosneft, the state-owned Russian oil major

Neelam Deo, Director, Gateway House, talks about the potential economic impact of the ongoing crisis in the Ukraine. In this interview, she also examines the aid packages offered to Ukraine by Russia and the West, and assesses how the situation will affect India’s trade relations