Recent reports suggest that India intends to reject oil tankers sanctioned by the United States for transporting Russian goods. This decision highlights the broader impact of US sanctions on global oil trade, potentially disrupting established shipping routes and impacting global energy markets, reports Bloomberg.
Expected Impact
Impact on Russian Oil Imports: Indian officials have stated that vessels carrying Russian oil loaded after January 10th will not be allowed to unload in India. However, this restriction does not apply to vessels chartered before that date, provided they unload by March 12th.
Impact on Oil Supply: While sanctions may initially disrupt oil supplies, the official believes that alternative sources, such as OPEC members and other major producers like the US, Canada, Brazil, and Guyana, can easily compensate for any shortfall.
Impact on Oil Prices: Indian refiners may lose the discounts they have been enjoying on Russian crude if supplies become scarce.
Finding Alternative Routes: Despite the sanctions, Russia will likely find alternative ways to deliver its oil to the market.
Verification Measures: Indian banks will require certificates of origin to ensure that imported oil does not originate from sanctioned sources.
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Source: Bloomberg
