NEW YORK (Diya TV) — Indian refiners are reconfiguring their oil trade business to ensure they still receive access to cheap Russian crude while avoiding new US sanctions, a Bloomberg report stated.
The reconfiguring comes after Washington imposed the sanctions on January 10 on dozens of tankers carrying Russian oil to Asia, and traders and finance networks facilitating Russia’s energy trade. Indian refiners, who are heavily reliant on crude imports, turn to alternative arrangements to maintain a blacklisted-free pipeline of Russian oil flowing in without sacrificing a regular supply, Bloomberg reported.
India, the world’s third-largest oil consumer, imports more than 80% of its crude, and cheap Russian barrels are part of its energy strategy. However, the recent US move added complexity to the trade, increasing costs and cutting available supply as refiners avoid dealing with sanctioned ships and middlemen.
New Delhi reaffirmed that it is determined to purchase Russian crude as long as the transaction complies with international prohibitions. Indian officials said that imports would persist if the price stays below the $60-per-barrel limit imposed by the G7 and European Union, as long as the supplies are shipped on non-sanctioned vessels and don’t involve dealing with blacklisted firms or individuals.
Meanwhile, the U.S. granted previously sanctioned Russian oil tankers an extension to continue offloading crude at Indian ports until Feb. 27. Though this reprieve provides immediate relief, long-term stability to the supply chain and the future of India’s trade relationship with Moscow is a cause of concern.
Analysts say that Indian refiners can increasingly turn to alternative channels, including direct purchases with Russian energy firms and third-party sellers outside US jurisdiction, for fuel imports.
