Potential Impact of Latest US Sanctions on Russian Oil Sales to India

Reports from industry experts suggest that the latest sanctions imposed by the United States on Moscow could have a significant impact on Russian oil sales to India. The US sanctions, implemented on Friday, February 23, aim to disrupt Russian oil exports in retaliation for the invasion of Ukraine and the death of opposition leader Alexei Navalny. 

 Specifically, the sanctions target Sovcomflot, a major Russian tanker group, and 14 associated crude oil tankers allegedly involved in price manipulation of Russian oil. Indian refiners, who heavily rely on Russian crude, are concerned that these sanctions will make it challenging to secure vessels for transporting oil, potentially driving up freight rates and reducing discounts on purchases.

 Industry sources also suggest that Russia may need to turn to trading companies to navigate around these sanctions, causing further market uncertainties. India's dependency on Russian oil has grown in recent years, with Russia becoming the country's primary oil supplier in 2023 due to bans on Russian oil imports by European countries. 

 Indian state refineries, including Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp, are currently in talks with Russian major Rosneft to secure an annual supply deal of up to 400,000 barrels per day of Russian oil, primarily Urals grade, for the upcoming fiscal year.