Fitch Ratings states that US sanctions on Russian oil producers will not significantly impact Indian oil marketing companies. The long-term effects depend on enforcement duration.

Fitch Ratings has assessed that the recent US sanctions on Russian oil producers Rosneft and Lukoil, along with the EU's ban on refined products derived from Russian crude, are unlikely to materially affect the margins or credit profiles of India's state-run oil marketing companies (OMCs). The agency noted that while compliance with sanctions is expected, the long-term impact will depend on how long these sanctions are enforced. Russian crude has become a major source for India, accounting for nearly 40% of its total oil imports, largely due to steep discounts following the Ukraine invasion. Although Indian refiners have ceased purchasing from sanctioned producers, they may still source unsanctioned Russian oil. Fitch anticipates that the refining margins will remain stable, supported by strong domestic demand and a government support package for key OMCs. The agency also highlighted that private refiners with EU exposure may face compliance challenges due to the complexities of tracing crude origins.