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India halts trade with US-sanctioned Russian business and tankers, government source states

Indian refiners have stopped dealing with U.S.sanctioned oil tankers and entities however the nation does not expect disturbance to Russian crude materials throughout a twomonth winddown duration, a government source stated on Monday.

The U.S. Treasury on Friday enforced sanctions on Russian oil producers Gazprom Neft and Surgutneftegaz and insurance providers Ingosstrakh and Alfastrakhovanie Group, targeting profits Moscow has actually used to fund its war with Ukraine.

Washington also approved 183 vessels utilized for transporting Russian oil while permitting an unwinding of some energy related transactions by March 12.

India will permit Russian oil cargoes reserved before Jan. 10 to discharge at ports in line with sanctions parameters, the main told press reporters on condition of anonymity.

In the next 2 months we do not expect major issues because the ships that remain in transit will come through. Going forward, it's early days yet to anticipate the effect, how discount rates form up, if someone is willing to sell below the $60. cost cap, he said.

The authorities said Russia might offer much deeper discount rates to. India to meet the $60 a barrel rate cap enforced by Group of. 7 countries in 2022 to be able to use western tankers and. insurance.

If we get Russian crude from a non-sanctioned entity which. is listed below the rate cap, I make sure we will more than happy to look at. it, the Indian federal government official said, including that Indian. banks will look for certificates of origin for Russian crude to. guarantee transactions do not involve sanctioned entities.

We are the third-largest consumer. Russia will find methods to. reach us, the authorities included.

The Kremlin stated on Monday that the latest U.S. sanctions on. Russia's energy sector ran the risk of destabilising global markets and. Moscow would do whatever possible to reduce their impact.

Global Brent crude futures extended gains on Monday,. climbing up above $81 to touch their highest since August.

Many Indian refiners are working out annual agreements with. significant producers for 2025/26 and might look for higher volumes from. major Middle Eastern manufacturers.

Manufacturers in the United States, Canada, Brazil, Guyana and. members of the OPEC group of oil manufacturers will boost output to. meet demand to balance out Russian supply lacks, the Indian. official said.

He included that India was likewise taking a look at the effect of the brand-new. U.S. sanctions on Russia's Vostok oil task, in which Indian. companies have a stake.

(source: Reuters)