India blocks port entry for tankers with sanctioned Russian oil
Bloomberg reported that India will not permit tankers carrying Russian oil subject to American sanctions to enter its ports. This represents a significant setback for Vladimir Putin's policy. After the EU opted to forgo Russian resources following the invasion of Ukraine, the Indian market became one of the crucial ones for Russia.
The effects of Washington's restrictions on the Russian oil industry last Friday are increasingly spreading. Bloomberg reports that India has decided to ban entry to its ports for tankers carrying Russian oil, which is subject to new sanctions imposed by the USA.
This information was conveyed, at least, by an Indian official. He explained that only those ships chartered before January 10 and arriving at their destination ports before March 12 will be permitted to unload at domestic ports.
Additionally, banks will require certificates of origin for the oil to ensure it does not originate from suppliers under sanctions.
A blow from Washington to Russia’s budget
The sanctions imposed by the USA cover the Russian oil industry and over 180 tankers of the so-called shadow fleet, which - by illegally transporting oil - enable Russia to circumvent international restrictions.
India is not the only country blocking sanctioned oil. The owner of the ports in China's Shandong province, where numerous refineries are located, has also announced that it will not accept sanctioned tankers. As a result, three are stranded off the coast of China.
This turn of events is a setback for Russia, which, after the invasion of Ukraine, had to seek markets to replace its European ones after EU countries decided to support Kyiv by gradually transitioning away from Russian resources. India and China became the primary markets, openly acknowledging this fact by citing reasons such as the promotional price.
In July 2024, India's import of Russian oil averaged 2.07 million barrels per day, reflecting a 12% increase from the previous year, while during the same period, China imported 1.76 million barrels per day.
Russian oil then accounted for 44% of total imports to India. By comparison, in 2021, before Russia's war against Ukraine, it represented only 2% of the annual imports.
