India refused to accept Russian oil from “Sovcomflot” tankers due to American sanctions

Due to US sanctions, all Indian refineries refuse to accept Russian oil transported by Sovcomflot tankers. This complicates trade between the countries, which developed quite actively after the Russian invasion of Ukraine.

Bloomberg writes this with reference to sources.

Interlocutors of the publication say that private and state refiners, in particular the largest Indian Oil Corporation, have stopped accepting cargoes arriving on “Sovcomflot” tankers. Refiners scrutinize the ownership of each vessel to ensure it is not linked to the company or other sanctioned groups.

Reliance Industries Ltd., the largest private oil refinery in India, resorted to similar actions.

The increased attention to the tanker giant is likely to have extended to other oil vessels carrying Russian oil, with two vessels waiting off the coast of South Asia for several weeks with no indication of when they would unload.

“Sovcomflot” stated this week that the sanctions are putting pressure on its operations. According to Bloomberg, “Sovcomflot” vessels shipped about 1.5 million barrels of “Urals” oil in March, compared to 4.4 million barrels in January and 4.7 million barrels in February. Some ships have yet to specify their destinations, so the final figure may rise.

• India has been a big buyer of Russian oil since the invasion of Ukraine, but increased U.S. sanctions have disrupted trade and led refiners to seek more expensive oil from other regions, such as the United States. In January, it was reported that tankers loaded with 10 million barrels of Russian Sokol crude were stuck off the coast of South Korea due to US sanctions and payment problems. The supply of Sokol oil to the Indian Oil Corporation (IOC) has been delayed due to payment problems, forcing Indiaʼs biggest refiner to use its reserves and buy more oil in the Middle East.