On October 22, Washington cut off one of the world’s biggest oil flows by sanctioning Rosneft and Lukoil, which produce 57 per cent of Russia’s crude.

Global oil prices reacted instantly. Within a week of the announcement, crude rose 7.5 per cent — from $61 to $65.6 a barrel — and may climb further as supplies tighten. Officially framed as a step toward peace in Ukraine, the US action was really about rescuing its struggling shale industry, regardless of the hit to global oil supplies.

Unlike UN sanctions that target specific entities, US sanctions are far broader. They punish not only the sanctioned firms but also anyone dealing with them. Non-compliance can land countries or companies on the Specially Designated Nationals and Blocked Persons (SDN) List, enforced by the US Office of Foreign Assets Control (OFAC), and cut them off from SWIFT (Society for Worldwide Interbank Financial Telecommunication) — the global network that enables cross-border payments. Losing access can freeze a nation’s trade overnight. The same risks extend to insurance, shipping, and technology systems, forcing refineries, shipping lines, and software vendors to quickly fall in line. Once Washington blacklists a company, few dare to engage with it.

India learned this the hard way in July 2025, when Microsoft’s suspension of services to the Gujarat-based Nayara Energy — a refinery with Russian shareholding — froze digital........

© Indian Express