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U.S. sanctions stranded tankers with Russian oil on their way to India

U.S. sanctions stranded tankers with Russian oil on their way to India Russian oil tankers stranded on their way to India (photo: GettyImages)

Almost five million barrels of Russian Sokol crude oil are stranded on their way to Indian refineries following new U.S. sanctions, according to Bloomberg.

It is reported that the vessels are idling miles away from their destination. One of the reasons for this situation could be the U.S. sanctions on tankers transporting Russian oil in violation of the price cap set by the Group of Seven (G7) countries.

In mid-October, the U.S. Treasury imposed sanctions on the first two vessels linked to trading Russian oil. Additional restrictions were placed on three more in mid-November and another three in early December.

Of the eight sanctioned vessels, six belong to the Russian state-owned tanker company PAO Sovcomflot.

Sanctions on Russian oil

The effectiveness of sanctions has diminished due to inadequate monitoring and adherence to the policy of restricting oil prices, allowing Russia to sell its oil at prices higher than the established limit, the authors note.

Additionally, a legal loophole in oil refining allows petroleum products made from Russian crude oil to enter countries in other regions of the world. This primarily concerns India, which significantly increased its oil imports from Russia.

It was recently reported that the U.S. government intends to halve Russia's income from oil and gas exports by 2030.

Bloomberg reported that the U.S. is signaling an intensification of measures to ensure compliance with the oil price restrictions from Russia.