Kolkata: With his latest round of sanctions against Russian oil giants, the Donald Trump administration in the US might be making it difficult for New Delhi to keep sourcing crude oil from Moscow, reports suggest. Russian oil majors Rosneft and Lukoil have been the target of the latest sanctions.
Reports indicate that refineries in India apprehend that crude imports from Russia could dip remarkably and can even stop, following the fresh wave of sanctions. While crude imports from Russia were marginal before 2022, the situation changed dramatically after Russia attacked Ukraine in 2022. The US urged countries to stop buying crude from Russia and suddenly Russian crude was available for cheaper rates compared too the global benchmarks.
Indian refiners avoiding direct supply
Washington’s latest move specifically targets oil shipments from Russian major suppliers. Earlier, the sanctions were not this specific. According to reports, Indian state-run refiners are scrutinising oil procurement from Russia to ensure that that there are no direct supplies coming from Rosneft or Lukoil. Analytics firm Kpler has said that Russian crude constituted more than 36% of India’s total imports this year.
India used to depend on imports from West Asian countries mainly. But Russia quickly became India’s largest crude supplier. When Donald Trump objected to it, New Delhi said it had the right to decide its strategy to obtain cheap energy. However, the latest round of sanctions might upset that plan. It should be noted that India avoids oil from Iran and Venezuela that comes under US sanctions.
Indian refiner Nayara Energy could be a possible exception, indicated reports. Nayara Energy is backed by Rosneft. Since July, Nayara Energy has been working only with Russian crude.
US sanctions follow EU step
“Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine,” US Treasury Secretary Scott Bessent has said in a statement. The US alleges that Rosneft and Lukoil are helping Putin to keep funding the Russian war machine. Incidentally, the US sanctions followed British sanctions against the two Russian oil giants. EU countries have joined the effort by approving a package of sanctions which incorporates a ban on imports of Russian LNG. To raise pressure the US has also urged Japan to suspend LNG imports from Russia. Washington has signaled that it will not hesitate to take more action against Moscow if it does not agree to a ceasefire in Ukraine quickly.
Crude oil futures inch down
Meanwhile, crude oil futures declined on Friday by Rs 24 to reach Rs 5,413 a barrel weak demand was noticed in the spot market. On the MCX, crude oil for November delivery declined 0.44 per cent, or Rs 24. In the global markets, West Texas Intermediate crude oil was trading 0.39% lower at $61.55 per barrel. Brent Crude slipped 0.41% to touch $65.72 a barrel in New York.