In a significant shift in energy procurement strategy, all Indian oil refineries have now unanimously declined to accept Russian oil transported by Sovcomflot (PAO) tankers, a direct consequence of the sanctions imposed by the United States. This development, as reported by Bloomberg, marks a pivotal moment in international trade and sanctions compliance.
Sources close to the matter reveal that both private and state-owned refineries, including the largest, Indian Oil Corp., have ceased to accept shipments aboard Sovcomflot vessels. The refineries have intensified their scrutiny of each vessel's ownership to ensure no affiliations with the sanctioned company or other sanctioned entities. This meticulous approach stems from a desire to fully comply with international sanctions, thereby avoiding potential legal and financial repercussions.
The stance adopted by Indian refineries echoes a similar decision made earlier by India's largest private oil processing conglomerate, Reliance Industries Ltd., highlighting a growing trend of caution among Indian importers against engaging with Russian oil shipped by sanctioned vessels. The heightened scrutiny has also affected other vessels transporting Russian oil, with reports indicating that two such ships have been stranded off the South Asian coast for several weeks, awaiting clearance to unload their cargo.
Moreover, the multinational conglomerate Reliance Industries Limited, which accounts for 7% of India's exports, has declared it will not purchase Russian oil loaded on Sovcomflot tankers, citing the imposed sanctions as the primary reason for this decision. This collective move by Indian refineries and conglomerates represents a significant stance on adhering to global sanctions, potentially impacting the logistics and supply chains of Russian oil exports.
