New US sanctions against Russia threaten to reduce sales of Russian oil to India, the largest buyer of sea oil from the aggressor country.
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Indian refiners are already concerned that the latest US sanctions will create problems in obtaining ships to transport oil from Russia and could lead to higher freight rates. And the Russians will have to move even larger volumes through traders to protect themselves from the risk of further sanctions, adding to the uncertainty. This was reported by Reuters.
It is noted that before the full-scale invasion of Ukraine, India rarely bought oil from Russia due to high transportation costs. However, Indian refineries are now big buyers because Russian oil prices are much lower after Europe banned oil imports from the aggressor country.
Last year, Russia became India’s largest oil supplier, with the country importing about 1.66 million barrels per day of Russian oil in 2023, compared with an average of 652,000 barrels per day in 2022.
It is noted that Rosneft has now offered a discount of 3-3.50 dollars. per barrel to Dubai prices. However, Indian refiners consider the proposed discount to be insignificant due to the uncertainty caused by the sanctions.
Indian government sources say India will continue to buy Russian oil only if it is sold below the ceiling price on non-sanctioned vessels.
Let us remind you that 20 of the 50 tankers that have come under US sanctions since October 2023 have stopped transporting Russian oil. The U.S. Treasury said it said the restrictions were “achieving” their goals: depriving Russia of profits from energy trade needed to fight the war in Ukraine and promoting stability in energy markets.
Source: Reuters
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.