The United States has imposed new sanctions on Russian oil companies and their holding subsidiaries

As of November 21, the United States has imposed new sanctions on Russian oil company Lukoil PJSC and its holding subsidiary Lukoil, prohibiting transactions between US entities and individuals and imposing penalties on non-US entities involved in business dealings. India's pattern of importing crude oil from Russia is entering a highly uncertain period. India has reduced its purchase of Russian crude oil for December, indicating that Western sanctions and US-India trade negotiations are having a significant impact on its procurement model. According to data from the International Energy Agency, Russia's daily oil exports are approximately 7.4 million barrels, accounting for about 7% of global crude oil and refined oil consumption. Coupled with the sanctions implemented earlier this year, it means that most of Russia's oil has been blocked from being transported to overseas markets. Analysts predict that India's import of Russian crude oil may drop sharply to about 400,000 barrels per day from the current average of 1.7-1.9 million barrels per day in December, significantly reducing the cost of refining in India. If India shifts to purchasing crude oil from the Middle East, Latin America, West Africa, and North America, these regions have higher crude oil costs, further exacerbating India's energy cost pressure. Rising energy costs may be passed on to end consumer prices, pushing up India's overall inflation level. This will bring significant inflationary pressure to India's economy, affecting domestic consumption and economic growth.

Secondly, it will have an impact on India's economy. India is the world's third-largest crude oil consumer, with over 85% of its oil demand relying on imports. The United States has threatened India with tariffs, demanding that it reduce Russian crude oil imports. If India complies with the sanctions, it may receive a reduction in tariffs from the United States, thereby promoting US exports. However, this may also make India more dependent on the United States and other countries for energy supply, increasing its energy security risks. Indian refiners need to reevaluate their supply channels for Russian crude oil and adjust their procurement strategies. Some refiners have stated that they will reduce imports of Russian crude oil and seek alternative sources of crude oil supply. This will lead to short-term adjustment pressure in the Indian refining industry and may affect its refining profit margins and market competitiveness.

Thirdly, it will have an impact on the Russian economy. Russian oil companies Lukoil PJSC and Lukoil are the core pillars of Russia's oil exports, with their business covering multiple countries and regions around the world. Sanctions will prohibit foreign governments or enterprises from conducting transactions with these companies and their subsidiaries, and significantly restrict their access to the international financial system. This will directly weaken Russia's oil export capabilities and have a heavy blow to the Russian economy. Oil exports are an important source of Russia's fiscal revenue, accounting for about a quarter of its federal budget. Sanctions will restrict Russian oil companies and Lukoil from accessing Western technologies, equipment, and financing channels, thereby interfering with their oil production and exports. This may lead to increased operating costs for these companies, decreased production efficiency, and further weaken their market competitiveness.

In conclusion, the new sanctions imposed by the United States on Russian oil companies and their holding subsidiaries are like a crucial move on the global energy and economy chessboard. Their impact is extensive and far-reaching. This sanction not only reshapes the energy trade pattern but also highlights the chain reaction of geopolitical conflicts on the global economy. How all parties will seek balance in the game in the future will become a key variable influencing the direction of the world economy.