India to reduce its oil imports from Russia amid sanctions pressure, Bloomberg reports
Illustrative photo: India to buy less Russian oil due to Western sanctions (Getty Images)
Indian officials expect Russian oil imports in December to drop to 800,000 barrels per day. The reason is increased inspections to ensure compliance with Western sanctions, Bloomberg reports.
Sources told the outlet that in recent weeks, ports have implemented increased inspections of Russia’s shadow fleet vessels, which the aggressor country uses to circumvent sanctions. In addition, oversight of bank payments has also been strengthened.
Specifically, shadow fleet tankers are now required to provide certificates of origin, flag registration details, and other documentation.
Indian officials reported that all Indian refineries, except for Nayara Energy Ltd. — which is supported by the sanctioned Russian company Rosneft —have reduced imports from Russia. According to the officials, Nayara increased its volumes because European sanctions have made it dependent on Russia for crude supplies.
In November, India was ordering about 1.9 million barrels of Russian oil per day. According to a statement from Kpler last week, December deliveries may reach around 1.3 million barrels per day.
In October, the US imposed sanctions on Russian oil giants Rosneft and Lukoil, as well as their 36 subsidiaries, to pressure the Kremlin into negotiating over Ukraine. Immediately afterward, the market capitalization of both companies dropped sharply, and they were forced to sell off foreign assets.
In addition, major state-owned Chinese refineries halted purchases of ESPO crude following the US sanctions. India is now following a similar path.
According to media reports, roughly 48 million barrels of Russian oil could remain "stuck" at sea due to US sanctions. Ultimately, dozens of tankers will be forced to seek alternative ports of destination.
