India found a way to bypass sanctions and not lose cheap Russian oil

Despite new sanctions imposed by the United States and the European Union against the Russian energy sector, oil supplies from Russia by sea have not yet stopped.

Reuters reports this.

According to the agency, India, which is one of the main buyers of Russian raw materials, may continue to import oil through intermediaries. Exports from Russia’s main western ports – Primorsk, Ust-Luga and Novorossiysk – in October amounted to about 2.33 million barrels per day, which corresponds to the updated shipment plan for the month.

A new package of US sanctions against Rosneft and Lukoil will come into effect on November 22. The US has given the companies until November 21 to complete existing agreements with the Russian energy giants.

However, most tankers that have already departed from Baltic ports will arrive in India later, as the sea journey takes about four weeks.

“Everything that is currently being loaded in Primorsk is guaranteed to arrive in India after the sanctions come into effect,” one trader told Reuters.

Indian refiners have not yet decided on their future procurement policies. In particular, Reliance Industries, one of the main importers of Russian oil, is assessing how the new restrictions may affect contracts.

Analysts suggest that sales of Russian raw materials could shift to intermediaries and independent traders, which would increase sellers’ costs but allow Indian buyers to avoid direct violations of sanctions.

Recall thatafter the introduction of new sanctions against Russian energy companies, Indian oil refineries temporarily stopped placing new orders for the supply of Russian oil.

As reported, the Furia tanker carrying Russian oil, bound for India, changed course and stopped in the Baltic Sea after the US tightened sanctions against Russian oil companies.

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