Bloomberg Learns India Refuses to Ship Oil via Sanctioned Ships

India will deny unloading to tankers subject to U.S. sanctions announced on Jan. 10, a senior Indian official told Bloomberg. An exception will be made for vessels chartered before Jan. 10 on the condition that they unload by March 12.

The official said Indian banks would demand certificates of origin to ensure the oil did not come from sanctioned suppliers, but stressed that RUSSIA would “find a way” to supply oil to India.

According to the agency's source, Indian oil refineries are negotiating long-term contracts with suppliers in the Middle East, and depending on the situation, they may request additional supply volumes. At the same time, he noted, Indian companies may lose the discounts they enjoyed when buying Russian oil if supplies are reduced.

The Economic Times and REUTERS previously reported that Indian and Chinese oil refiners are looking for new suppliers, particularly in the Middle East .

According to Bloomberg's source, the impact of the sanctions will be felt after they come into full force in two months. At the same time, he notes, oil supplies will not be a problem for India, since OPEC+ has spare capacity, and suppliers that are not part of the association can increase production. The Indian official also believes that although the rise in oil prices above $80 per barrel is a problem, it will not last long.

On January 10, the United States imposed the “most significant” sanctions ever against the Russian energy sector. The list included two of the four largest Russian oil producers (Gazprom Neft and Surgutneftegaz), dozens of oil service companies, and traders around the world that sell Russian oil. Also under sanctions were more than 180 tankers (in addition to oil tankers, this includes an icebreaker, supply vessels, and several LNG tankers), which the US authorities consider part of Russia’s “shadow fleet.”

In addition, the restrictions affected Ingosstrakh and AlfaStrakhovanie, which are engaged in the insurance of maritime transport.

Russian presidential press secretary Dmitry Peskov said supply routes "cannot be simply cut off": if something is blocked in one place, an alternative route appears in another. According to him, Russia will look for options to minimize the impact of sanctions.

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