Nayara Energy, an Indian oil refiner partly owned by Russian oil major Rosneft, is facing operational challenges due to European Union sanctions. These sanctions have led to banking restrictions and difficulties in securing vessels for transporting fuel, prompting Nayara to seek support from Indian lenders and the government. Domestic shipowners have ceased working with the company, further complicating logistics. Concurrently, US sanctions and tariffs are impacting India's trade and energy sectors. The US has imposed a 25% tariff on select Indian exports, including apparel and textiles, in response to India's continued purchases of Russian crude oil. This tariff affects approximately 55% of India's shipments to the US, which totaled $86.5 billion in 2024-25 with a $41 billion surplus. Moody's estimates that these tariffs could reduce India's GDP growth by 30 basis points. Additionally, US secondary tariffs effective from August 27 threaten over half of the ships arriving in India after August 21, putting at risk around 10% of India's Russian crude imports for August. As a result, Indian refiners may need to shift to alternative crude sources, likely from the Middle East. The Indian government plans to urge states like Gujarat, Maharashtra, and Tamil Nadu to support labor-intensive sectors affected by the US tariffs through measures such as a ₹2,250 crore Export Promotion Mission and efforts to find new markets and boost domestic demand. The tensions between the US and India over Russian oil and trade policies have also led to new flashpoints, including India's shipbreaking hub dismantling US-sanctioned tankers. These developments could prompt reforms in India's energy sector amid rising geopolitical and economic pressures.