Despite Western sanctions, India has seen the return of Russian 'Sokol' crude oil, marking a resurgence in trade ties between the two countries. According to Bloomberg, three tankers loaded with 'Sokol' oil are currently docked at Indian ports, with a fourth en route, signaling a clear continuation of trade activities that seemed to falter under the pressure of US sanctions.
The supertanker Nireta is anchored near Visakhapatnam on India's eastern coast, while two other tankers, Vostochny Prospect and Erecter, are near Jamnagar on the west, both signaling Sikka as their destination, based on tracking data collected by Bloomberg. This development comes after all 'Sokol' shipments loaded in March and the majority from February were delivered to China, indicating a shift in the distribution pattern back to India for some of these cargoes.
Previously, Indian refineries had halted imports of Russian oil transported by the state-owned 'Sovcomflot' due to Western sanctions. However, the trade has continued through intermediaries. Refinery executives in India, requesting anonymity, told Bloomberg that the only change is that 'Sokol' oil is now being supplied by traders rather than directly from the producer, with the cargoes being offered at attractive discounts. This strategy has led to the revival of certain supply chains to India, despite the ongoing sanctions.
It remains unclear whether the trade issues have been fully resolved and whether all four tankers will successfully offload their crude in Indian ports this month. This situation unfolds as India is set to receive about 7.6 million barrels of American oil next month, the highest in a year, amidst escalating sanctions against Russian oil.
The influx of 'Sokol' crude into India amid these sanctions highlights the complex dynamics of international oil trade, where geopolitical tensions and economic incentives often intertwine. India's ability to navigate these challenges reflects its strategic approach to ensuring energy security while balancing its relations with major oil-producing nations.
