India suspends new orders for Russian oil
Indian oil refineries have not placed new orders for Russian oil since the imposition of fresh sanctions and are awaiting clarification from the government and suppliers.
Source: Reuters
Details: Some refineries are covering their oil needs via the spot market, according to unnamed sources who spoke on condition of anonymity as they are not authorised to speak to the media.
State-owned Indian Oil has issued a tender for crude purchases, and the Reliance Industries conglomerate has increased spot market purchases, the sources said.
The EU, UK, and US have imposed a series of sanctions on Russia over its war against Ukraine, including new US measures introduced on Thursday targeting Russia's two largest oil producers – Lukoil and Rosneft.
As reported by Reuters on Thursday, Indian refineries are preparing to sharply cut Russian oil imports to comply with the new US sanctions, which may help clear a key hurdle in trade talks with Washington.
Last week, Reliance – India's largest buyer of Russian oil – stated that it would comply with sanctions while maintaining relationships with current suppliers. Reuters also reported that the company plans to stop importing oil from Rosneft.
"We have not placed orders yet for fresh cargoes and have cancelled some that were booked from traders with links to the sanctioned entities," one source said.
"We need to ensure that our purchases are not linked to sanctioned entities as banks will not facilitate payments," another source added.
A separate source noted that their company is waiting to see whether it can receive shipments from non-sanctioned traders or structures.
According to the International Energy Agency (IEA), India accounted for 40% of Russia's total oil exports.
Background:
- The US has imposed sanctions on Russia's largest oil firms, Rosneft and Lukoil, as well as their subsidiaries.
- On the morning of 23 October, the European Union formally approved its 19th package of sanctions against Russia.
- Indian company Reliance Industries Ltd. has purchased millions of barrels of crude from the Middle East and the US after the US sanctioned Rosneft and Lukoil.
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