- U.S. Sanctions Disrupt Russian Oil Supplies Bound for India.
- India’s Russian Oil Imports Hit by Tighter Western Sanctions.
- Sanctioned Vessels Carrying Russian Oil Change Course from Indian Ports.
At least two ships carrying Russian oil meant for Indian refineries have been redirected to different locations after the latest U.S. sanctions, as reported by trade sources and LSEG trade flow data, reports Reuters.
New Sanctions Target Iran-Linked Entities and Russian Oil Transport
This week, the U.S. Treasury Department slapped sanctions on over 115 individuals, entities, and ships linked to Iran, some of which are involved in the transportation of Russian oil. U.S. President Donald Trump has urged countries to halt their oil purchases from Russia, warning of 100% tariffs unless Moscow agrees to a significant peace deal with Ukraine.
India’s Russian Oil Supply Faces Growing Disruptions
According to trade sources, three vessels were set to deliver Russian oil to Indian ports this month, but all three are now under U.S. sanctions. One ship was headed for the east coast of India, while the other two were on their way to western ports, based on information from trade sources and Russian port data.
As a result of the sanctions, one vessel has changed course to China, and another is now heading to Egypt. The third ship is still making its way to an Indian port that major Indian refiners use.
Impact on Indian Refiners and Global Oil Trade
India relies on Russia for over a third of its oil imports. However, the tightening of Western sanctions aimed at reducing Russia’s oil revenue is starting to impact these vital supplies. One of India’s state refiners, which was supposed to receive a redirected shipment, didn’t respond to Reuters’ email for comment. Another refinery, which was also identified as a potential recipient of an incoming shipment, also chose not to comment.
Sanctioned Ship Owners Remain Unreachable
The companies linked to the sanctioned vessels have not been reachable for comment, as both are currently under U.S. sanctions.
A spokesperson from a major Indian private refiner clarified: “Neither of these two vessels, Guanyin and Tassos, is coming to us” This company has previously purchased oil from at least one of the sanctioned vessels.
Additional Sanctioned Cargoes Headed to India
Two additional vessels loaded with Russian crude are gearing up to unload Russian Urals oil at the same private refinery, according to data from LSEG. Both of these ships are under sanctions from Britain and the European Union. India has voiced its disapproval of the EU sanctions, arguing that these actions negatively affect its energy security and the stability of its supply.
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Source: Reuters
