India to cut Russian oil imports after US sanctions: Report
What's the story
India is planning to reduce its imports of Russian crude oil following the move by the United States to impose new sanctions on two major Russian producers, Rosneft and Lukoil, Reuters reported, citing sources. The sanctions were imposed over President Vladimir Putin's "refusal to end this senseless war" in Ukraine and Moscow's "lack of serious commitment" to the peace process.
Industry response
Reliance Industries to halt imports
Reliance Industries, India's largest importer of Russian crude, is planning to cut or completely stop its imports from Moscow, two sources told Reuters. When asked about the plans, a company spokesperson said, "Recalibration of Russian oil imports is ongoing, and Reliance will be fully aligned to GOI (Government of India) guidelines." The Indian oil ministry is also reviewing trade documents to ensure no supply comes directly from Rosneft or Lukoil after November 21, another source said.
Expert opinion
Deadline is November 1
According to a statement released on Wednesday, the US Treasury has given corporations until November 21 to wind down their operations with Russian oil producers. "There will be massive cut. We don't anticipate it will go to zero immediately as there will be some barrels coming into market" before the deadline, a refinery source told the news agency.
Sources
India may turn elsewhere for oil
State refiners like Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp, and Mangalore Refinery and Petrochemicals are scrutinizing bills of lading for Russian petroleum arriving after November 21 to ensure it is not coming directly from Rosneft or Lukoil. India had ramped up its imports over the past two years as Western buyers reduced their purchases, allowing Indian refiners to get cheaper oil. However, Indian refiners may now turn to alternative suppliers in the Middle East and Africa.
EU
Eu sanctions Russia
On the same day the US sanctions were announced, the EU announced its 19th package of sanctions against Russia. The EU's new sanctions package includes a ban on Russian liquefied natural gas (LNG) imports. Slovakia had initially held out due to concerns over high energy prices and climate targets but has now agreed after new clauses were added to meet its demands. The sanctions also impose travel restrictions on more Russian diplomats and add vessels to Moscow's shadow fleet list.