Context

•  Recently the USA banned all imports of Russian oil and gas energy in response to Russia`s aggression towards Ukraine. 
• The ban will block any new purchases of Russian crude oil, certain petroleum products, liquefied natural gas, and coal, and wind down the deliveries of existing purchases.
• New investment from the US in Russia`s energy sector would also be prohibited.

US-Russia energy relation

The USA ranked one in crude oil production and is a net exporter of crude oil energy. Russia accounted for only 10 percent of USA oil imports which implies that this ban will not much more affect the USA`s domestic energy demand but will put a small economic loop for Russia.

Impact of the ban on Crude oil prices 

•  Oil is a very sensitive and finely balanced commodity around the world. Any disruption in the supply side impacts the prices, that is when the supply will down automatically prices would rise.
• Therefore any ban from the USA and mainly by the Economic union on oil would lead to a drastic increase in crude oil prices worldwide.

Implications  for India

•    Russia is being the major economic partner of India for a long. According to recent data, India and Russia share trade of $9.4 billion against $8.1 billion in 2020-21. Major imports include crude oil, petroleum products, coal, fertilizers, gold, precious stones, and precious metals. Besides that Russia is also the biggest arms supplier of India.
• Due to its strategic importance for India, any worldwide sanction on Russia and disruption in crude oil prices will hit a bad to already suffering economy. The unexpected rise in oil prices will lead to Inflation, unemployment, poverty,  fiscal deficit, current account deficit-like crisis for India. It is also being observed that every 10 percent rise in crude oil price will shave off around o.2 percentage points from the GDP growth and widen the current account deficit by 0.3 percent.