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According to Bloomberg reports, refiners in India are reluctant to enter into long-term contracts with Russian oil companies.
Three Indian refineries were in talks to receive 500,000 barrels per day from Rosneft.
Sanctions on Russian oil trade have made it more difficult for Russia to do business with friendly countries.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Leading Indian oil refiners are reportedly pulling out of long-term contracts for crude oil from Russian suppliers amid tightening US sanctions.
“Bloomberg” reportsthat three of India’s state-owned oil refineries had been in talks with Russian energy giant Rosneft to secure 500,000 barrels a day, about a third of India’s daily imports.
The report said India’s largest state-owned refiner, Indian Oil, was considering reducing crude oil supplies from Russia under its long-standing supply contracts. Two other major companies, Bharat Petroleum and Hindustan Petroleum, have not committed to long-term contracts with Russian suppliers. According to Bloomberg, contractual agreements would reduce reliance on one-time purchases, which are more expensive.
The move away from long-term contracts for Russian crude comes amid Western sanctions on Russian oil trade, with India buying more from other countries such as Saudi Arabia in February.
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Although Russia is still the country’s largest crude oil supplier, Indian refiners are increasingly turning to Middle Eastern countries such as Iraq, the United Arab Emirates and Saudi Arabia. The shift caused the country’s Russian oil imports to fall to their lowest level since January 2023 last month.
Sources told Bloomberg that state refiners planned to meet 40 percent of their crude oil needs through spot deals in the coming fiscal year starting April 1, indicating that a large amount of Russian oil will continue to flow into India.
Read the original article Business Insider.
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India refines Russian oil and makes profits – sanctions apparently have little effect, which the federal government is aware of, according to media reports