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US Sanctions Prompt Indian Refineries to Reduce Direct Purchases from Russian Oil Giants
Oil Trade: Following the US imposition of new sanctions on Russian oil companies Rosneft and Lukoil from November 21st, India is planning to cut direct purchases of Russian crude oil. This could reduce imports by the end of November. Refineries like Reliance, MRPL, and HPCL-Mittal may take this step to comply with the sanctions.
India is planning to cut direct purchases of Russian crude oil from the end of November. This could reduce Russian crude oil imports into India by the end of November. This step comes after new US sanctions on Russia's two largest oil companies came into effect on November 21st. Analysts say that Indian refineries, accounting for more than half of India's total Russian oil imports, may cut direct purchases of Russian oil to comply with new US sanctions. These include Reliance Industries, Mangalore Refinery &Petrochemicals, and HPCL-Mittal Energy.
In fact, as of November 21st, the US has declared severe economic sanctions against two Russian oil firms, Rosneft and Lukoil. Under this, all US assets and financial transactions of these companies have been frozen. Furthermore, entities from other countries may also be subject to secondary sanctions if they engage in large transactions with them.
Sumit Ritolia, principal research analyst at shipping information firm Kpler, said that Russian crude oil shipments will decline after November 21st, as most Indian refineries will reduce or stop direct purchases from Rosneft and Lukoil in compliance with US sanctions.
