Indian banks have started blocking payments for Russian oil imports following the latest package of US sanctions against Russia’s oil industry. About this informs Energy Intelligence.
State banks “State Bank of India” and “Punjab National Bank” show the greatest caution, while private institutions have taken a softer position. According to the results of last year, Russia exported 1.7 million barrels per day to India, or almost half of all seaborne oil deliveries.
India has become the world’s largest importer of Russian oil since the start of Russia’s full-scale invasion of Ukraine in February 2022 and the imposition of Western sanctions. In 2024, almost half of Russian seaborne crude oil exports went to India.
About 20% of these exports are provided by the Russian companies “Surgutneftegaz” and “Gazprom Neft”, which fell under the latest package of Washington sanctions. Sanctioned shadow fleet tankers are reported to have delivered 450,000 barrels of crude oil to India every day.
Tankers booked before the January 10 sanctions are allowed to unload at Indian ports until March 12, the end of the US-imposed grace period. At the same time, Indian refineries have already concluded agreements to purchase crude oil from Oman and the United Arab Emirates, Reuters reported, citing sources in the industry.
