India reduces Russian oil imports ahead of new US sanctions

According to a report by The New York Times (NYT), citing sources familiar with the matter, India is ending its three-year period of intensive oil purchases from Russia ahead of the implementation of US sanctions.

The report states that the last supertankers carrying Russian oil departed from Black Sea ports approximately four weeks ago. The tankers were reportedly attempting to reach India before November 21, the date the sanctions are scheduled to take effect.

Shipments experienced a 66% drop

On November 19, analysts reported that oil shipments from Russia to India had fallen by 66% compared to the previous month due to “logistical tactics.”

The Economic Times attributed this decline to Indian oil refineries becoming more cautious in the face of US sanctions against Russian oil companies.

At the end of October, the US Treasury Department issued a license requiring the termination of operations with Rosneft, Lukoil, and their subsidiaries in which they hold a 50% or greater stake, by November 21.

Additionally, a separate license was issued for the termination of operations related to Lukoil’s gas stations outside of Russia.

Washington’s long-standing pressure

Since 2022, the US has repeatedly expressed its displeasure with India’s significant increase in oil purchases from Russia.

Even before the sanctions were announced, New Delhi faced threats from Washington of increased tariffs due to its procurement of Russian oil.

In a report published in August, the Financial Times described the dilemma facing India as a “conundrum.”

The magazine wrote that New Delhi would either have to stop buying oil from Russia or accept the tariffs.

Following the failure of negotiations, 50% tariffs came into effect on August 27.

New Delhi: We are forced to buy

In statements from the Indian Ministry of External Affairs, it was asserted that the country is compelled to buy oil from Russia, adding, “The very countries that criticize India continue to trade with Moscow themselves.”

The Ministry also described the tariffs as “unjust and unwarranted.”