Indian oil refineries have temporarily suspended the processing of new orders for Russian oil following the imposition of sanctions by the United States against leading oil companies in the Russian Federation. While awaiting official clarifications from the government and suppliers, companies are partially meeting their raw material needs through the spot market. A number of already reserved batches related to sanctioned entities have also been canceled.
This is reported by Business • Media
India and China Seek Alternatives to Russian Oil
Indian importers are carefully scrutinizing deals to avoid cooperation with sanctioned individuals, as banks refuse to process payments in such cases. Many companies are waiting for offers from traders who are not subject to the restrictions. According to industry sources, state-owned oil refining companies in India are considering further purchases of Russian oil at discounts, trying to work with lesser-known suppliers instead of energy giants “Rosneft” and “Lukoil,” which have been sanctioned.
After the tightening of US sanctions, China has also begun to move away from its preferred grade of Russian oil, ESPO, leading to a decrease in prices for this type of raw material.
Europe Increases Diesel Imports Amid New Restrictions
European traders are rapidly increasing imports of diesel fuel and jet fuel in preparation for winter and anticipating new restrictions on the supply of petroleum products made from Russian oil. Forecasts suggest that the volumes of imports of these types of fuel could reach a monthly record.
“Indian companies are also carefully checking to ensure that purchases are not linked to sanctioned individuals; otherwise, banks will not process payments. Some importers are waiting for offers from non-sanctioned traders or counterparties.”
Meanwhile, Hungarian Prime Minister Viktor Orban believes that US President Donald Trump made a mistake when he decided on strict sanctions against the two largest Russian oil companies.