India to reject oil tankers sanctioned by US - Bloomberg
Photo: India will reject oil tankers under US sanctions (Getty Images)
India plans to reject oil tankers that have been sanctioned by the US due to their role in transporting cargo for Russia. This is another example of the impact of Washington's measures on the global oil market, according to Bloomberg.
A senior Indian official told the media outlet that ships hit by sanctions will not be allowed to discharge.
However, this does not apply to vessels chartered before January 10, provided they unload by March 12.
The Indian official noted that the effects of the sanctions will be felt in two months:
According to him, oil supply is not an issue. OPEC has 3 million barrels per day of spare capacity, while non-OPEC suppliers such as the US, Canada, Brazil, and Guyana can easily add barrels.
Currently, Indian refiners are negotiating to sign term contracts with suppliers from the Middle East. Depending on the market situation, they may seek additional barrels.
Indian refiners are expected to lose discounts on Russian oil they have been using if supply becomes scarce.
Moreover, Indian banks will require certificates of origin to ensure that the oil does not come from suppliers under sanctions.
At the same time, the official is confident that Russia will find ways to deliver oil to India.
US sanctions against Russia
On January 10, the US Department of the Treasury announced new sweeping sanctions against Russia's energy sector, including the largest oil company, Gazprom Neft, and Surgutneftegaz. They are aimed at hindering Moscow's war against Ukraine by depriving it of billions of dollars per month.
The sanctions also affect over 180 vessels, dozens of oil traders, oil industry service providers, insurance companies, and officials in the energy sector.
According to Kpler, the latest sanctions target tankers that account for about 42% of Russia's maritime oil exports, mostly to China.
As reported by Reuters, these new US sanctions against Russian oil companies are the most extensive restrictions against the country's energy sector. Russia could lose billions of dollars per month.
