Indian oil refineries have temporarily suspended new purchases of Russian oil following the imposition of strict US sanctions against leading oil companies in the Russian Federation. Currently, companies are awaiting official clarifications from the government and suppliers, while the shortage of raw materials is being covered by operational purchases on the spot market. Some previously booked supplies related to sanctioned entities have already been canceled.
This is reported by Finway
India Analyzes Alternatives and Seeks to Avoid Risks
Indian importers are intensifying checks to ensure that new purchases are not related to sanctioned individuals, as banks refuse to process payments for such transactions. Some companies are awaiting offers from suppliers that are not under sanctions. According to reports, state-owned oil refineries in India are considering options for further purchases of discounted Russian oil, preferring smaller suppliers over large energy corporations like Rosneft or Lukoil.
China Reduces Purchases of Russian Oil, While Europe Increases Fuel Imports
Following the introduction of new US sanctions, China has also begun to reduce purchases of its preferred grade of Russian oil, ESPO. As a result, a decrease in prices for this grade has been recorded in the market.
European traders, preparing for winter and amid plans to tighten restrictions on the import of petroleum products made from Russian oil, are increasing purchases of diesel and aviation fuel. In October, the volumes of imports of these types of fuel may reach record levels for the last month.
“Indian oil refining companies have temporarily halted new orders for Russian oil following the imposition of US sanctions against the largest Russian oil companies. They are currently awaiting clarifications from the government and suppliers, while part of their raw material needs is being met on the spot market.”
At the same time, Hungarian Prime Minister Viktor Orban noted that US President Donald Trump made a mistake by imposing strict sanctions against the two largest oil companies in Russia.