India stops taking Russian oil delivered on Sovcomflot tankers

Mar22,2024



All refiners in India are now refusing to take Russian raw PJSC Sovcomflot moved on tankers US sanctionsThe invasion of Ukraine two years ago has further complicated trade that has boomed.
People familiar with the matter said private and state-run processors, including the largest – Indian Oil Corporation – have stopped taking cargoes if they are on Sovcomflot tankers. Refiners are checking the ownership of each ship to make sure they are not affiliated with the company, or other sanctioned groups, he said, asking not to be named because the information is private.
The widespread protests follow a similar move by Reliance Industries Ltd, India's largest private refiner, reported earlier this week. The tanker giant's tight scrutiny appears to have snared other oil vessels carrying Russian oil, with two ships waiting for weeks off the South Asian coast without any indication of when they would be offloaded.
Indian Oil, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Mangalore Refinery and Petrochemicals Ltd and Nayara Energy Ltd – 49% stake owned by Russia's Rosneft PJSC – did not immediately respond to emails seeking comment.
Sovcomflot declined to comment on its operational activities.
Last month, the US Treasury's Office of Foreign Assets Control designated Sovcomflot and identified 14 crude oil Tankers in which the state-controlled firm has an interest. It comes on top of broader measures already imposed on non-Sovcomflot vessels and Russia-friendly companies since October for violations of the Group of Seven cap on the price of Russian oil.
India has been its major buyer russia oil Since the invasion of Ukraine, however, strict enforcement of US sanctions has disrupted trade and forced refiners to demand more expensive crude from other regions such as the US. Sovcomflot said this week that the fines were putting pressure on its operations.
The Sovcomflot issue means there are fewer tankers to deliver Russian crude, leading to a decline in the country's oil prices to offset higher freight costs, the people said.
After the war the discount to comparable supplies rose to $30 per barrel, but has declined and is currently around $2-$4. Indian buyer, The South Asian country is still expected to take large amounts of Russian crude this month, with Kpler forecasting imports of 1.8 million barrels per day – the most since July.



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