Tankers Newly Sanctioned by US Supplied Russian Oil to India

Tankers Newly Sanctioned by US Supplied Russian Oil to India

Three oil tankers, newly sanctioned by the US, have been regularly shipping crude oil from Russia’s Far East to Indian Oil Corp, the top refiner in India. The US imposed sanctions on maritime companies and vessels for shipping Russian oil sold above the Group of Seven’s price cap. The sanctioned tankers include the Kazan, Ligovsky Prospect, and NS Century. Shiptracking data from LSEG, Kpler, and trade sources confirm that all three tankers have discharged Russian Sokol crude in India. While two of them made the trip in October, NS Century is currently on its way to discharge Sokol crude at Vadinar port in Gujarat for Indian Oil Corp on November 25, according to LSEG and Kpler data. The sanctions may reduce the number of ships carrying Russian oil in the short term, but they are unlikely to completely halt the trade due to its profitability. Traders believe that as long as there are willing buyers, sellers and shippers will always find a way to make the oil flow. Some traders predict that India may seek supply from the Mediterranean and North Sea to replace Russian Sokol. Indian Oil Corp buys Sokol crude under an annual contract with Russian oil major Rosneft. The spike in global prices led to Russian oil being sold above the price caps imposed by western nations of $60 a barrel. The three tankers obtained safety certification from the Indian Register of Shipping (IRClass) last year, according to its website. However, neither Indian Oil Corp nor IRClass has commented on the issue.

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TIS Staff

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