Which countries buy Russian oil and what is the financial hit from sanctions?

The United States has announced fresh sanctions targeting Rosneft and Lukoil, Russia’s two largest oil producers, after efforts to end the war in Ukraine stalled. The stated goal is to increase pressure on Russia’s energy sector and curb the Kremlin’s ability to fund its war and prop up a weakened economy.

Who is buying Russian oil now?

Following the European Union’s decision to ban most seaborne imports of Russian crude from January 2023, global oil trade routes shifted dramatically from Europe to Asia. China, India and Turkey have emerged as the biggest buyers of Russian barrels that previously flowed to the EU.

Since the EU boycott, China has been the largest purchaser of Russian energy by value, with an estimated $219.5 billion in oil, gas and coal. India follows at around $133.4 billion, and Turkey at approximately $90.3 billion. China now sources up to 20% of its crude imports from Russia, and data suggests roughly a quarter of that volume is supplied by Rosneft and Lukoil.

In volume terms, China reportedly bought around 100 million tonnes of Russian crude last year and imported close to 2 million barrels per day last month. India, which had imported relatively little before the invasion, now brings in roughly 1.6 million barrels per day. Turkey is also a notable customer, while other buyers include the EU, Myanmar, Azerbaijan and others; however, the China and India flows dominate financially.

According to independent analysis, China and India together purchased about 85% of Russia’s crude exports in September. The EU, meanwhile, increased its intake of Russian LNG and pipeline gas, while Turkey stepped up purchases of oil products.

How UK rules interact with Russian oil

The UK banned the import, acquisition and supply of Russian oil and oil products in December 2022. However, experts told the UK Treasury Committee that some Russian-origin oil can still reach the UK indirectly if it has been refined in a third country such as India. One industry estimate suggested refined Russian-origin products likely account for well below 5% of UK oil imports. The UK has joined the US in sanctioning Rosneft and Lukoil.

How much damage could the new sanctions do?

The financial impact may not be immediate. Current measures require counterparties to wind down dealings with Rosneft and Lukoil by 21 November, allowing major buyers like India and China time to adjust or redirect purchases. There is also the possibility that Moscow could re-engage in talks during the transition period in hopes of easing restrictions.

Recent analysis estimated Russia’s total fossil fuel revenues at about €546 million per day in September. It also indicated that if a $47.60-per-barrel price cap had been fully enforced, Russia’s revenues would have fallen by roughly €1.53 billion in September 2025 alone.

Market reaction and oil prices

Oil markets rallied on the sanctions news. Uncertainty tends to push prices higher, and the move was not widely anticipated. Brent crude gained about 4% to approach $65 per barrel, recovering from prior weakness. One fund manager described the measures as a surprise shift in tone and noted that the effectiveness of the sanctions remains to be seen. There were also claims that India might halt purchases of Russian oil, though such pledges will be tested by market realities and policy choices.

For context, Brent crude climbed to around $77 earlier in the summer amid fears that the Strait of Hormuz could face disruptions.

The scale of Russia’s oil exports and key producers

Russia exports roughly 4 million barrels of oil per day, with Rosneft and Lukoil accounting for about half of that. Rosneft alone is responsible for around 6% of global oil production, underscoring how central the company is to world supply. Together, Rosneft and Lukoil have a combined market capitalization of about $105 billion, with Rosneft the larger of the two. By comparison, UK-based BP is valued at roughly £66 billion.

Bottom line

Sanctioning Rosneft and Lukoil targets the core of Russia’s oil machine and is designed to tighten financial pressure. Yet the immediate revenue hit may be limited as buyers unwind contracts and seek alternatives. With China and India absorbing the lion’s share of Russian crude, enforcement rigor, price caps, and the willingness of major importers to pivot will ultimately determine how much the measures reduce Moscow’s energy income and disrupt global oil flows.