India Turns Away Russian Oil Tanker As Sanctions Evolve

ByCharles Kennedy– Mar 27, 2025, 1:30 PM CDT

India oil terminalimage

India moved on Thursday to deny entry to a Tanzanian-flagged tanker carrying Russian crude, signaling that New Delhi is ramping up scrutiny of vessels transporting oil from Russia, Reuters reported exclusively. 

The vessel, Andaman Skies, was en route to the Vadinar Port to deliver 100,000 metric tons (roughly 800,000 barrels) of Varandey crude oil sold by Russia’s Lukoil. Indian port authorities refused the tanker entry, citing documentation issues, particularly its seaworthiness certification, Reuters quoted unnamed sources familiar with the matter as saying. 

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The Andaman Skies, built in 2004, is more than 20 years old and, according to Indian port regulations, requires a seaworthiness certificate from an approved classification society. While the vessel held certification from Dakar Class, an organization based in India, it is not recognized by the country’s maritime administration. Entry was refused despite the fact that the same vessel entered Indian ports as recently as December 2024.

India has become the largest importer of Russian crude, with Russian oil comprising roughly 35% of its total crude imports last year. However, the country has faced increasing pressure due to U.S. and European sanctions targeting Russian oil exports, which have disrupted global shipping routes. 

The sanctions environment continues to evolve, and the uncertainty of the Trump administration appears to have pushed India to pay closer attention to the oil that is entering its ports. The Andaman Skies is not subject to U.S. or UN sanctions but is listed under UK and EU sanctions.

The tightening regulations reflect a broader trend where Indian refiners, who buy Russian oil on a delivered basis, now rely on ships and insurers that are not sanctioned by the U.S., further complicating the flow of crude. 

Sources told Reuters that Lukoil and Russian insurer Soglasie did not immediately respond to inquiries, while Indian authorities declined to comment on the matter.

Evolving sanctions have benefitted the U.S., with U.S. oil exports to India in February hitting their highest volumes in more than two years, jumping from 221,000 bpd in 2024 to 357,000 bpd in February, based on Kpler data cited by Reuters.

By Charles Kennedy for Oilprice.com

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