All Indian oil refineries, both private and state-owned, have refused to supply Russian oil via tankers to shipping company Sovcomflot following the latest US sanctions against the company. In this respect reported Bloomberg cited sources familiar with the situation.
Indian refiners now check the ownership of each ship to ensure they are not associated with Sovcomflot or any other sanctioned company, according to the agency.
Sovcomflot’s problems mean Russia will have fewer tankers to export and will have to reduce oil discounts to buyers to compensate for the country’s higher freight costs after shrinking its fleet, sources told the agency.
On March 21, Reuters reported that Indian Reliance Industries would refuse to supply Russian oil to Sovcomflot tankers due to US sanctions. The agency suggested that other Indian refineries would follow the example of Reliance Industries, which has threatened to reduce Russia’s oil exports to the country.
In February 2024, the USA imposed restrictions on Sovcomflot and its 14 tankers due to Russia’s special operation in Ukraine.
Early India sharply reduced Purchase of Russian premium oil.