Indian Refineries Boycott New Purchases Of Russian Oil

Indian Oil has issued a tender for the purchase of crude oil.

Indian oil refiners have not placed new orders for Russian oil supplies after new US sanctions were imposed, Reuters reports, citing industry sources, noted The Moscow Times.

According to the agency's interlocutors, Indian refineries are awaiting clarifications from authorities and suppliers. Rosneft and Lukoil, Russia's largest oil companies, which account for one in two barrels of production and exports, have fallen under the Donald Trump administration's blocking measures.

"We have canceled some of the previously ordered shipments from traders linked to the sub-sanctioned companies," one source in India's oil sector told Reuters. Another said banks simply "will not make payments" if a sub-sanctioned company is a party to the deal.

To replace Russian barrels, state-run Indian Oil has issued a tender to buy crude and Reliance Industries has increased spot purchases, the sources said.

The use of intermediaries in the form of spill companies, which could buy oil from Rosneft and Lukoil and resell it to end customers, is not being considered by the authorities. Indian companies will not buy Rosneft and Lukoil oil supplied by traders, an Indian government source told Reuters.

It is difficult to predict when Indian companies will place new orders for Russian crude, he added.

In September, India bought 1.6 million bpd from Russia, covering 36% of its import needs. At the peak, in April-June this year, supplies reached about 2 million barrels per day. For Russian oil producers, India has become the largest market for oil exported by sea and the second largest buyer after China, if all supplies (including pipeline deliveries) are taken into account.

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