India halts trade with US-sanctioned Russian oil tankers and companies

Indian refiners, following China, have stopped cooperation with US-sanctioned oil tankers and companies, but the country does not expect Russian crude supplies to be disrupted during the two-month disruption, a government source who requested anonymity said, on Monday, the 13th of January, reports Reuters.
The US Treasury Department on Friday imposed sanctions on Russian oil producers Gazprom Neft and Surgutneftegaz, as well as some insurers, targeting revenues Moscow is using to finance its war in Ukraine.
Washington also imposed sanctions on 183 vessels used to transport Russian oil, many of which are “shadow fleet” tankers, while allowing the suspension of some energy-related transactions until the 12th of March.
India will allow Russian oil cargoes booked before 10th of January to unload at ports under the terms of the sanctions, the official told reporters.
The official said no major problems are expected in the next two months as transit cargoes arrive, but the long-term impact depends on discounts offered by Russia and sales volumes with the price cap.
The official added that Russia could offer deeper discounts to meet the 2022 G7 price cap of 60 dollars per barrel in order to continue using Western tankers and insurance.
“If we get Russian crude from a non-sanctioned entity at a lower price, I am sure we will be happy to consider it,” the Indian government official said, adding that Indian banks would demand certificates of origin for Russian crude to ensure that no sanctioned entities are involved in the transactions.
“We are the third largest consumer. Russia will find ways to reach us,” the official added.
The Kremlin said on Monday that the latest US sanctions against Russia’s energy sector threatened to destabilise world markets and that Moscow would do everything possible to mitigate their impact.
Most Indian refiners are in talks with major producers for annual contracts for 2025/2026 and may be seeking higher volumes from major Middle East companies.
Oil producers in the US, Canada, Brazil, Guyana and members of the OPEC group of oil producers will increase output to meet demand and offset Russia’s supply shortfall, an Indian official said.