The White House‘s attempt to temporarily unblock energy supplies from the Russian Federation has hit an unexpected snag in New Delhi. The country’s largest state-owned lender, State Bank of India (SBI), has refused to process payments for Russian oil, despite a formal 30-day waiver granted by the Donald Trump administration. Bankers fear that this brief “thaw” could end abruptly, leaving them exposed to secondary US sanctions.
Risks Outweigh Profits
Management at SBI views transactions involving Rosneft and Lukoil as “toxic” for its global operations. The USA accounts for 26% of the bank’s international loan portfolio (approximately $75 billion), and any compliance failure could prove catastrophic for its reputation. The bank completely halted services for Russian contracts back in October 2025 and has no intention of shifting its stance without long-term legal guarantees from Washington.
Europe Benefits from Indian Caution
For European nations consistently reducing their dependence on the Russian Federation, SBI’s position serves as a clear signal that the aggressor’s financial isolation is deeper than political rhetoric suggests. While the Kremlin hopes to exploit the Persian Gulf crisis to re-enter the market, major global players prefer to stay on the sidelines. Indian caution effectively reinforces the Western sanctions front, depriving Moscow of reliable currency channels even when formal permissions are in place.