India shuts ports to Russian oil tankers amid U.S. sanctions
India will not allow tankers carrying Russian oil subject to American sanctions to enter its ports, Bloomberg reported. This represents a significant setback for Vladimir Putin's strategy. The Indian market became one of the key ones for Russia after the EU decided to abandon Russian raw materials following the invasion of Ukraine.
The effects of the restrictions imposed by Washington on the Russian oil industry last Friday are becoming increasingly apparent. India has decided to ban entry to its ports for tankers carrying Russian oil that are subject to the new sanctions imposed by the USA, Bloomberg reports.
An Indian official conveyed this decision, explaining that only those ships chartered before 10 January and arriving at their destination ports before 12 March will be permitted to unload at domestic ports.
Additionally, banks will require certificates of origin for the oil to ensure the supplies do not come from sources under sanctions.
A blow from Washington to Russia’s budget
The sanctions imposed by the USA target the Russian oil industry and over 180 tankers of the so-called shadow fleet, which - by transporting oil illegally - enable Russia to circumvent international restrictions.
India is not the only country closing itself 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 these ships are stranded off the coast of China.
This development poses a significant setback for Russia, which, after the invasion of Ukraine, had to find alternative markets to replace its European ones after EU countries decided to support Kyiv by gradually moving away from Russian resources. India and China became the main markets, which they did not particularly hide, citing reasons like the promotional price.
In July 2024, the import of Russian oil into India averaged 2.07 million barrels per day (approximately 329 million litres per day), representing an increase of 12% compared to the previous year, while China imported 1.76 million barrels per day (approximately 280 million litres 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.
