India Reshuffles Trade Supply Chain to Buy Unsanctioned Russian Oil | OilPrice.com
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Breaking News:
Indian refiners are reshuffling and reconfiguring the oil traders, insurers, and vessel owners with which they work in a bid to continue receiving the cheaper Russian oil without risking violating the latest U.S. sanctions on Russia’s oil exports, anonymous executives directly involved in the trade told Bloomberg.
India has been scrambling for supply and for ways to get Russian oil from entities that are not blacklisted by the U.S. Administration, following the January 10 U.S. sanctions on dozens of tankers hauling Russian crude to Asia, and the designation of more oil traders and networks involved in Russia’s oil trade.
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For India, which imports more than 80% of the crude it consumes daily, the costs have spiked and the cheap Russian barrels are disappearing as Indian refiners steer clear of tankers explicitly sanctioned by the U.S.
India will continue to buy Russian oil if it is sold below the $60 per barrel price cap and delivered on non-sanctioned tankers and without any involvement of sanctioned companies or individuals, Indian officials have said.
The reconfiguration of the supply chain is now happening, but it could take time and force Indian refiners to book more expensive cargoes from other exporters, at least for the March and April loadings.
For now, India has received clarification from the U.S. that the Russian oil tankers sanctioned last month are allowed to discharge their crude at Indian ports until February 27.
While the U.S. clarification could be a relief for India for this month, it is not certain how trade will proceed going forward.
Eager to continue crude imports from Russia but only on legit tankers and with the help of non-sanctioned entities, India is working to reconfigure the supply chain.
“Imports need ships which are not sanctioned, insurance which takes time to reconfigure, and imports will need payments to go through. So each one of these has problems that need to be solved,” Indian Oil Secretary Pankaj Jain said at the India Energy Week conference.
“We are working on solving these problems,” Bloomberg quoted the official as saying.
By Charles Kennedy for Oilprice.com
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