"Financial Times": US sanctions on Russian oil confuse imports from India and China

The major oil refineries in India and China are seeking to reduce their imports of Russian oil, in the wake of the sharp escalation of sanctions by the US administration.

 

The United States imposed new sanctions on two of the largest Russian oil companies, “Rosneft and Lukoil,” in an attempt to restrict the Kremlin and major importers. For Russian oil, China and India.

The Financial Times reported: British officials and prominent suppliers said that the largest crude oil refining facilities in the world, in India and China, have begun to stop most of their purchases of Russian crude oil.

Reliance Industries stated… Hindi that it will "recalibrate" Its imports are in line with government directives, at a time when crude oil prices rose by more than 5 percent after new American measures taken against the two “Rosneft” groups. And “Lukoil” The Russian Federation, and its impact was echoed in global energy markets.

A source familiar with the ongoing discussions told the Financial Times: That Reliance Company It is unlikely to risk retribution from the United States, after US sanctions were issued on Wednesday evening.

A source close to China’s largest state-owned oil companies said that all of them had halted purchases after the US sanctions were imposed, although smaller independent oil refineries will continue to import Russian crude oil.

Beijing has asked several major oil companies to cancel their purchases of oil. Russian transported overseas after US and European sanctions, according to a statement by a Chinese supplier dealing with one of the Chinese state-owned oil groups, but he said that the stop may be temporary.

An OPEC representative said: The British newspaper said that the bloc of oil exporters would be ready to increase supplies if necessary by the time of the ministerial meeting scheduled for late November – but he warned that so far “there is no agreement or formal discussion” On the issue.

Since the outbreak of all-out war in Ukraine in 2022, India has become the largest buyer of Russian seaborne oil, while sanctions have pushed other buyers out of the market.

Trump has strongly criticized New Delhi for its excessive purchase of Russian oil, and imposed harsh sanctions in an attempt to persuade it to abandon passing money to Moscow.

China and India together receive approximately 80 percent of Russian oil exports, while crude oil and natural gas constitute about 25 percent of Russia’s federal budget.

The newspaper indicates that about half of China’s imports of Russian oil come via sea, and the rest through above-ground pipelines, which suppliers say are almost less exposed to sanctions. Last December, Reliance, which is controlled by the richest man in Asia, Indian billionaire Mukesh Ambani, strengthened its position as the largest beneficiary of cheap Russian oil by signing a 10-year contract to buy approximately 500,000 barrels per day of crude from the American company. "Rosneft".

But the recent US sanctions mean that companies that buy Russian oil risk losing their access to the dollar-denominated financial system.

The RBC analyst commented: For Capital Markets, Helima Croft, said such secondary sanctions would “force refineries, which depend on US capital markets, to look for alternative sources of supply.”

India imports about 1.5 million barrels per day of Russian crude oil, second only to China, which imports nearly two million barrels per day, most of it via oil transportation infrastructure. Crude.

A person familiar with the discussions between New Delhi and local crude refineries said that the Indian government had specifically asked companies, including state-owned companies, to begin reducing imports of Russian oil.

The Kpler analyst said: In New Delhi, Sumit Retulia, said that most state-owned refineries such as Indian Oil, which import heavily from Chinese oil through third-party suppliers, the impact on them is still limited.

But he added, “For Reliance, in light of the direct arrangements it has concluded with Rosneft, such a development may show impact in the short term, especially on the compliance front.

Over the past three years, Reliance has remained… The largest beneficiary of Russian oil, it earned nearly $6 billion due to reduced prices, according to data and analysts from Energy Aspects. Consulting.

The Financial Times reported: The Indian Oil Minister and the state-owned Indian Oil Company declined to respond to her requests to comment on the report.

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