On October 22, the Trump administration announced sanctions against two major Russian oil companies, Lukoil and Rosneft, marking the first direct sanctions against Russia during Trump's second term.

Reuters quoted industry sources on the 23rd as saying Indian refiners are reportedly preparing to significantly cut Russian oil imports to comply with new US sanctions, potentially removing a major obstacle to a trade deal between India and the US. Sources have also told US media that Russian oil supplies to India are expected to fall to near zero.

Sources familiar with the matter told Reuters that Reliance Industries, India's largest buyer of Russian crude oil and a private company, plans to reduce or completely halt Russian oil imports, including terminating a large, long-term purchase agreement with Rosneft.

In response to inquiries about whether the company plans to reduce Russian crude oil imports, a Reliance Industries spokesperson said: "We are recalibrating our Russian oil imports and will fully comply with Indian government guidelines." Reliance Industries operates the world's largest refinery in India. The company has a long-term agreement with Russian oil giant Rosneft to purchase nearly 500,000 barrels of crude oil per day. Reliance Industries' refineries also purchase Russian oil through intermediaries.

Traders revealed that Reliance Group has recently purchased spot crude oil from the Middle East and Brazil, which may be used to partially replace Russian supplies. A Middle Eastern trader in contact with Reliance Group said that some people were indeed looking for supplies in the market on the 23rd.

One source said that before the US sanctions were imposed, Reliance Industries had considered halting Russian oil imports at one of its export-oriented refineries due to the EU's ban on refined products produced using Russian crude oil, which is set to take effect in January.

A source with direct knowledge of the matter said that after the US sanctions on two Russian oil companies, including Indian Oil Corporation and Bharat Petroleum Corporation, the imports of Russian crude oil from the refinery were halted. Indian state-owned refiners, including Rosneft and Hindustan Petroleum Corporation, are also reviewing their Russian oil trade documents to ensure that no oil comes directly from the sanctioned Rosneft and Lukoil.

Nayara Energy, an Indian refiner whose largest shareholder is Rosneft, also sources oil from the Russian state-owned oil company. Nayara Energy did not immediately respond to a request for comment.

Trade sources say Indian state-owned refiners rarely purchase directly from Rosneft and Lukoil, typically using intermediaries.

The Indian Ministry of Petroleum and state-owned refiners did not immediately respond to requests for comment.

A refinery executive told Bloomberg that Russian oil supplies to major Indian refiners are expected to fall to near zero following the US sanctions on Russian oil companies.

A refinery source, who requested anonymity, said: "[India's] imports will be significantly reduced. We don't expect it to drop to zero immediately, as some crude oil will still enter the market through intermediaries." "If the Trump administration does indeed back up today's rhetoric with action, we expect refiners seeking access to U.S. capital markets to abandon Russian crude," RBC Capital Markets analyst Helima Croft wrote in a report.

Another Indian refinery official said: "It all depends on the banks. If the banks agree to settle the payments, we will buy; otherwise, our imports will be zero." Since the outbreak of the Russia-Ukraine conflict, India has become the largest buyer of discounted Russian seaborne crude oil, importing approximately 1.7 million barrels per day in the first nine months of this year.

Trump has repeatedly pressured India to stop buying Russian oil and has imposed a 25% punitive tariff, bringing the tariff rate to 50%. The US and India are currently negotiating a potential trade agreement that could reduce India's tariffs in exchange for a gradual reduction in its crude oil imports from Russia.

Trump earlier told the media that Indian Prime Minister Narendra Modi had pledged to stop buying Russian oil, but India has not confirmed this.

According to TASS, Russian Foreign Ministry spokeswoman Maria Zakharova said at a regular press conference that the latest US sanctions would not cause problems for Russia, as Russia has developed a "strong immunity" to such restrictions.

"We believe this move will be extremely counterproductive," Zakharova said, adding that the US move does not signal a negotiated resolution to the Russia-Ukraine conflict.

She also stated that Russia sees no major obstacles to the US and Russian leaders reaching an agreement on the framework for a solution to the Ukrainian issue, which they have discussed.