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India, the world’s third-largest oil consumer, will only import Russian crude transported via non-sanctioned ships and companies, according to Oil Secretary Pankaj Jain.
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India became the top importer of Russian seaborne crude following Western sanctions after the 2022 Ukraine invasion.
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Operational challenges persist due to U.S. secondary sanctions, despite India only formally adhering to UN sanctions.
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Indian refiners have communicated to Russian suppliers that internal compliance and diligence standards must be met, especially regarding shipping and logistics.
India, now the leading buyer of Russian seaborne oil, has issued a clear compliance mandate: no oil imports will be accepted if the supply chain involves entities or vessels sanctioned by the United States.
Oil Secretary Pankaj Jain, speaking at the India Energy Week conference, stated:
“It is the responsibility of the supplier to deliver to me something that meets my requirements of compliance.”
This marks India’s strongest official stance yet on the Russian oil trade, as it balances energy needs with the risk of secondary U.S. sanctions, which could affect Indian companies and banks tied to the U.S. financial system.
Despite not formally recognizing unilateral sanctions, India is feeling the pressure. Recent U.S. sanctions have:
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Targeted Russia’s oil supply chain
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Caused tanker freight rates to surge
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Prompted Indian and Chinese ports to shun sanctioned ships
Indian refiners emphasized that:
“We don’t want to take risk. We are not going to touch any cargo that involves sanctioned entity or ships in the supply chain.”
Due Diligence at Delivery
India takes delivery of oil at its import destinations, not the ports of export, placing the onus on suppliers to ensure:
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“Clean logistics”
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Compliance with U.S. sanctions parameters
“My internal compliance and diligence requirements have to be met by any supplier, because it is coming to my doorstep.” – Pankaj Jain
Another refining official reiterated:
“We are only a buyer and clean logistics have to be arranged by sellers.”
Indian refiners also held meetings with Russian business delegations at the India Energy Week to reinforce these positions and discuss pathways for continued, compliant trade.
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Source: Reuters
