Indian banks are (carefully) back in the Russian oil game
Indian banks are willing to consider financing Russian oil deals again, but only if strict rules are followed.
After new US sanctions on Russian oil because of the Ukraine war, banks here were wary of clearing payments—mainly because tracking where the oil came from was tricky.
Now, they're open to deals with sellers who aren't blacklisted and who are sanctions-compliant.
How it works—and why refiners are still cautious
Banks have set up tough compliance checks: payments can be made in UAE dirham or Chinese yuan, and every shipment's origin and ship history is double-checked to avoid any blacklist drama.
Even with bigger discounts on Russian Urals crude (thanks to sanctions on companies like Rosneft and Lukoil), Indian refiners are treading carefully—they don't want payment issues or legal headaches, but these steps help them get cheaper oil without breaking any rules.