US Sanctions Disrupt India's Russian Oil Payments

Indian banks are reportedly starting to block payments for Russian oil imports in response to new U.S. sanctions targeting Russia's oil sector, Orda reports, citing Energy Intelligence via The Kyiv Independent.

The latest round of U.S. restrictions, announced on January 10, targets major Russian oil companies and nearly 200 vessels in Moscow's "shadow fleet."

According to Energy Intelligence's January 20 report, India's state-owned banks have taken the lead in compliance, with the State Bank of India and Punjab National Bank showing particular caution to avoid violating the sanctions.

Private banks, however, are reportedly taking a more flexible approach to the new restrictions.

Meanwhile, Reuters had previously reported that Indian refineries had secured new crude oil supply agreements with Oman and the UAE, according to industry sources.

S&P Global Commodity Insights writes that the sanctioned companies Surgutneftegaz and Gazprom Neft supplied about 20% of Russia's oil exports to India. At the same time, blacklisted tankers carried 450,000 barrels per day - a quarter of all Russian oil deliveries to the country.

Bloomberg reports that Indian authorities will ban sanctioned tankers from their ports after March 12, when the U.S. Treasury's wind-down period expires.

According to a senior official in New Delhi, India will continue accepting loaded tankers until that deadline before the sanctions take effect.