Even as India's public-sector oil refineries have halted purchasing crude oil from Russia reportedly under penalty threats from the US and European Union sanctions against Russia, two vessels carrying Russian oil destined for Indian refineries have diverted to alternative ports.
The diversion follows new US sanctions, a Reuters report suggested. The US Treasury Department this week imposed sanctions over 100 individuals, entities, and vessels linked to Iran, including some involved in transporting Russian oil.
US President Trump has urged countries to halt purchases of Russian crude, threatening 100 percent tariffs unless Moscow agrees to a meaningful peace deal with Ukraine.
Three ships — the Aframaxes Tagor and Guanyin, and the Suezmax Tassos — had been scheduled to deliver Russian oil to Indian ports this month, according to trade sources. All three vessels are now under US sanctions.
Tagor was en route to Chennai on India’s east coast, while Guanyin and Tassos were heading to western Indian ports, based on trade sources and Russian port data.
Western sanctions targeting Russia’s oil revenue — a key source of funding for its war in Ukraine — have increasingly disrupted Moscow’s crude flows to India, which sources over a third of its oil from Russia.
The Tagor is now heading to Dalian in China, while Tassos has diverted to Port Said in Egypt, the data shows. Guanyin, however, remains on course to Sikka, a port used by Reliance Industries and Bharat Petroleum Corp Ltd (BPCL).
Indian Oil Corp (IOC) was expected to receive the Tagor cargo. Zulu Shipping, linked to the Panama-flagged Tagor and Tassos, and Silver Tetra Marine, owner of Guanyin are under US sanctions.
Reuters quoted a spokesperson for Reliance saying, “Neither of these two vessels, Guanyin and Tassos, is coming to us.” However, Reliance has previously taken delivery of oil transported via Guanyin.
Two other vessels — Achilles and Elyte — carrying Russian Urals crude are preparing to discharge at Reliance facilities, according to LSEG (London Stock Exchange Group) data. Both ships are sanctioned by the UK and the European Union. India has criticised the EU’s sanctions regime.