Chinese and Indian firms cut Russian oil dealings over US sanctions
Photo: India’s Vadinar oil refinery (Getty Images)
Chinese and Indian banks and oil refineries are taking measures to comply with US sanctions targeting Russia’s two largest oil companies, according to Reuters.
The outlet refers to a representative of the US Department of the Treasury.
According to the unnamed official, many Chinese and Indian companies, "risk-averse, do recognize the importance of the relationships with the West, and are moving to comply." The comment was given to journalists during a conference call.
Earlier, Reuters reported that India’s energy giant Reliance Industries fully halted imports of Russian crude as of 20 November.
The decision came amid tightening sanctions by the United States, the United Kingdom, and the EU against Russian oil companies, primarily Rosneft and Lukoil.
Reliance holds a long-term contract with Rosneft for around 500,000 barrels of oil per day. Nevertheless, the corporation has repeatedly stressed that it would follow all sanctions imposed on Russia and comply with international restrictions on the energy sector.
US sanctions
In October, the United States introduced new sanctions against Russia. The measures targeted Rosneft, Lukoil, and their numerous subsidiaries involved in oil and gas extraction, refining, and sales across the country.
More than 30 units of both companies were added to the list, including oil fields, gas facilities, and refineries nationwide.
The sanctions aim to pressure Russia’s energy sector and curb revenues the Kremlin uses to finance the war and support the economy.
As a result, multiple countries have been effectively forced to reduce purchases of Russian crude and suspend cooperation with the two major Russian oil producers.
