India’s energy security remains steady despite new US sanctions targeting Russia, Indian Oil Corporation (IOC) Chairman Arvinder Singh Sahney said during an interview with ANI at the World Economic Forum in Davos.

Sahney highlighted that India’s diverse energy supply sources, including OPEC, OPEC+, and non-OPEC suppliers from countries such as the United States, Brazil, Guyana, and the Gulf region, mitigate potential risks from single point failures due to geopolitical disruptions.

The US on January 10, 2025, introduced sweeping sanctions against Russian oil companies and almost 200 vessels in Moscow’s "shadow fleet." The measures, aimed at further isolating Russia following its invasion of Ukraine in February 2022, have had immediate repercussions.

Indian banks, including state-owned entities such as State Bank of India and Punjab National Bank, have begun blocking payments for Russian oil purchases, according to Energy Intelligence as cited in a report by Kyiv Independent. Private banks, however, appear to be taking a more flexible approach.

As the areas of convergence between New Delhi and Moscow shrink, the loss of the energy trade pillar in the relationship is likely to give India more reason to look elsewhere.

India emerged as a leading importer of Russian crude since 2022, accounting for nearly half of Russia’s seaborne crude exports by 2024. Approximately 20% of these exports stem from sanctioned Russian producers Surgutneftegaz and Gazprom Neft, with daily shipments of 450,000 barrels arriving on sanctioned tankers. Shipments already in transit are likely to be unaffected as sanction restrictions carry a grace period before they come into effect, however, any new shipments will bear the brunt.

To compensate, Indian refiners have turned to alternative suppliers, signing deals with Oman and the UAE, according to a Reuters report.

Sahney also predicted stable crude oil prices, expecting a range of $75-80 per barrel with a bias toward the lower end. Current global crude prices are around $75.5 per barrel. While US President Donald Trump’s administration has warned of further measures should Russia reject peace talks over Ukraine, Sahney assured listeners that India would continue to prioritise its energy security by expanding crude purchases, including from the US if necessary.