Bloomberg: Russian oil trade feels pressure of Western sanctions in India
Russia's oil trade is starting to feel the pressure of Western sanctions as Indian refineries no longer accept tankers of Moscow's state-owned Sovcomflot shipping company, Bloomberg reported on March 23.
Following the sanctions imposed against Russia over its invasion of Ukraine, Moscow has been seeking new markets for its fossil fuels. India has become a key buyer of Russian oil, second only to China.
Multiple tankers carrying Russian crude have been unable to land in Indian ports in recent months in connection to sanctions. According to Bloomberg, dozens of sanctioned vessels are now idling by in numbers not seen since 2017.
The U.S. has been tightening its restrictions against Russian oil since last October, sanctioning around 40 oil tankers involved in the trade. Russia's largest shipping company, Sovcomflot, came under fresh sanctions in February for violating the $60-per-barrel price cap.
Towards the end of 2023, Group of Seven (G7) countries vowed to step up enforcement of the price cap, first implemented in December 2022, after reports emerged that Russia has continued to ship out much of its crude above $60 per barrel by using a "ghost fleet" of mostly uninsured tankers.
Sovcomflot transported around one-fifth of all Russian crude deliveries to India in 2023, Bloomberg noted.
Rising challenges to Russia's oil industry, one of Moscow's key revenue sources, are compounded by Ukraine's drone attacks against the country's refineries. The U.K. Defense Ministry said that the drone strikes may have disrupted at least 10% of the country's refinery capacity.
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