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Against backdrop of declining prices: Reuters reports increase in India's import of Russian oil

Against backdrop of declining prices: Reuters reports increase in India's import of Russian oil The import of Russian oil into India is increasing against the backdrop of price declines (Photo: Getty Images)
Author: Daria Shekina

The decrease in global oil prices is helping India increase its imports from Russia. With the price of Russian oil below $60 per barrel, buyers can utilize Western services like insurance and shipping, according to Reuters.

India, the world's third-largest oil importer and consumer, has become the largest buyer of Russian seaborne oil, which the West started avoiding due to Russia's invasion of Ukraine last year.

Last month, the United States imposed sanctions on maritime companies and vessels transporting Russian oil being sold above the price set by the G7 countries, exceeding $60.

Sanctions won't affect India

Three sanctioned vessels, the Kazan, Ligovsky Prospect, and NS Century, regularly supplied oil to India.

An Indian official, speaking anonymously, has stated that Western sanctions on vessels would not impact India's consumption of Russian oil, as there are enough vessels in the market.

He also has declined to comment on the likely destination point for the NS Century vessel. The NS Century was heading to India when the sanctions were imposed and has since been sailing near Colombo.

Sanctions' effectiveness

The effectiveness of sanctions has decreased due to insufficient monitoring and adherence to the oil price limitation policy, allowing Russia to sell its oil at prices exceeding the set limit, according to the authors.

Additionally, the oil refining loophole legally permits petroleum products made from Russian crude oil to reach countries in other regions of the world. This primarily applies to India, which significantly increased its oil imports from Russia.

Earlier, US Treasury Secretary Janet Yellen stated that Washington was preparing to take stringent measures for breaching the established oil price ceiling.

Yesterday, it was reported that Britain imposed sanctions against a UAE-based company owning 62 tankers, which Russia used for oil transportation.