Indian stake in Russian oil asset does not change crude’s origin, experts say
Indian companies hold a 49.9 per cent stake in JSC Vankorneft, a Rosneft subsidiary linked to the wider Vostok Oil project. Experts told India Today that ownership does not make oil extracted in Russia “Indian” and would not by itself remove the crude from US sanctions or tariff rules.
Indian ownership of a Russian oil-producing asset does not change the country of origin of the crude, experts told India Today as Washington considers possible penalties for buyers of Russian energy. Indian state-run companies jointly hold 49.9 per cent of JSC Vankorneft, a Rosneft subsidiary whose assets form part of the wider Vostok Oil project. ONGC Videsh owns 26 per cent, while Oil India, Indian Oil Corporation and Bharat PetroResources hold the remaining 23.9 per cent through Vankor India Pte Ltd.
Rosneft retains 50.1 per cent and control of Vankorneft. Indian companies do not directly own the entire Vostok Oil project, which includes several fields in Russia’s Arctic region. Rahul Chopadekar of Rubix Data Sciences said crude extracted from Russian territory remains Russian-origin crude even when an Indian company owns a share of the producing asset or takes an economic entitlement to production.
He said the route taken by the oil would not change its origin either. Transporting the crude directly to India or through another country would not automatically turn it into Indian crude. The issue has gained importance after the US enacted a 2026 law allowing tariffs of up to 100 per cent on goods from major buyers of Russian oil and gas.
The source also states that the US Treasury’s sanctions authority added Vankorneft to its sanctions lists in October 2025.
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