India intends to abandon oil tankers that the US has sanctioned for their role in transporting cargo for Russia.
This was reported to Bloomberg by a senior Indian official.
He said that ships that have been sanctioned will not be allowed to unload at Indian ports. This does not apply to ships chartered before January 10, provided that they are unloaded before March 12.
The official also said that the effects of the sanctions would be felt in two months.
Indian refiners are currently in talks with Middle Eastern suppliers to enter into forward contracts and may seek additional barrels, depending on market conditions.
It is expected that Indian refiners could lose the discounts on Russian oil they have enjoyed if supplies become scarce.
Additionally, Indian banks will require certificates of origin to ensure that the oil does not come from sanctioned suppliers.
At the same time, the official is convinced that Russia will find ways to deliver its barrels to India.
- India is the largest consumer of Russian oil, which is being sold at a discount after Western countries stopped buying from Moscow over its invasion of Ukraine.
- On January 10, the US imposed a large-scale package of sanctions against Russian oil companies. 184 Russian tankers, including those from the Russian shadow fleet, were subject to restrictions.
- These sanctions have left three tankers carrying more than 2 million barrels of Russian oil stranded in waters off eastern China.
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