India to ban unloading of US-sanctioned Russian oil tankers
India is planning to ban the unloading of oil tankers that have been sanctioned by the US for transporting Russian cargo, according to a high-ranking government official who spoke to Bloomberg.
The official, who wished to remain anonymous, stated that tankers on the sanctions list will be prohibited from unloading their cargo. Exceptions will be made for vessels chartered before January 10, provided they complete unloading by March 12.
Indian banks will require certificates of origin to ensure that the oil does not come from suppliers sanctioned by the United States.
The official also revealed that Indian oil refineries are currently negotiating long-term supply agreements with Middle Eastern countries and may request additional volumes depending on market conditions. India is reviewing the participation of state-owned companies in the Vostok Oil project, which has also been sanctioned.
If Russian supplies decrease, Indian oil refineries may lose the discounts they have been enjoying.
The official is confident that the impact of the sanctions will be felt in about two months, after the transition period ends.
"Oil supply is not an issue. OPEC has 3 million barrels a day of spare capacity while non-OPEC suppliers like US, Canada, Brazil, Guyana can easily add barrels. Price is an issue but the rally above $80 shouldn’t last long," the Indian official noted.
Russia has not yet stated its position on the new sanctions, but it is likely to find ways to deliver oil to India, the official believes.
On January 8, 2025, Reuters reported that some of China's largest ports had banned entry for tankers from Russia's shadow fleet.
On January 10, the US imposed new sanctions against Russia, targeting key companies for the Russian economy, such as Surgutneftegaz, Gazprom Neft, Ingosstrakh, AlfaStrakhovanie, and others.
The UK followed the US in announcing new sanctions against Russian oil companies.
Three tankers carrying over 2 million barrels of Russian oil were stranded in waters off eastern China after the US imposed sanctions on them.
