India shuts ports to Russian oil tankers under US sanctions
Bloomberg reported that India will not allow tankers carrying Russian oil subject to American sanctions to enter its ports. This is a significant blow to Vladimir Putin's policy. The Indian market became one of the key markets for Russia after the EU decided to abandon Russian raw materials following the invasion of Ukraine.
The effects of the restrictions that Washington imposed on the Russian oil industry last Friday are becoming increasingly widespread. Bloomberg reports that India has decided to ban entry to its ports for tankers carrying Russian oil that are subject to new sanctions imposed by the USA.
A report from an Indian official indicated that only those ships chartered before January 10 and arriving at their destination ports before March 12 will be allowed to unload at domestic ports.
Additionally, banks will require certificates of origin for the oil to ensure it does not come from suppliers under sanctions.
A blow from Washington to Russia’s budget
The sanctions imposed by the USA affect the Russian oil industry and over 180 tankers of the so-called shadow fleet, which—by illegally transporting oil—allow Russia to circumvent international restrictions.
India is not the only country closing its doors to the sanctioned oil. The owner of the ports in China's Shandong province, where numerous refineries are located, also announced that it would not accept sanctioned tankers. Three of them are currently stranded off the coast of China.
This turn of events is a setback for Russia, which, after the invasion of Ukraine, had to look for markets to replace its European ones following EU countries' decision to support Kyiv by gradually reducing dependence on Russian resources. India and China became the main markets, openly citing the promotional price as a reason.
In July 2024, the import of Russian oil into India averaged 2.07 million barrels per day, an increase of 12% compared to the previous year, while China imported 1.76 million barrels per day during the same period.
Russian oil then constituted 44% of total imports to India. For comparison, in 2021, before Russia's war against Ukraine, it accounted for only 2% of annual imports.
