India's state-owned refineries are avoiding contract supplies of Russian oil due to increased US sanctions.
India is trying to break its dependence on Russian oil
The largest state oil refinery, Indian Oil Corp, will most likely reduce the volume of crude oil received as part of the so-called urgent supplies.
Bloomberg reported this info.
Meanwhile, Bharat Petroleum Corp and Hindustan Petroleum Corp have decided not to make firm commitments to purchase contract oil next fiscal year.
The three refineries negotiated with the Russian PJSC "Rosneft" to receive about 500,000 barrels daily, equivalent to a third of India's daily imports. They have tried reducing reliance on one-off purchases, which are often more expensive.
What are the prospects for Russian oil supplies to India
Russia is still the largest supplier to India, but there are signs that refineries are buying more from other producers, including Saudi Arabia, the publication writes.
State-owned companies are also looking for contract oil from the Middle East and West Africa, but the deals will likely be more expensive than Russian oil.
State-owned refiners are expected to meet 40% of their crude oil needs in the fiscal year starting April 1 through one-time purchases or spot deals. This means that large volumes of oil from Russia can still flow into India.
Last year, Indian Oil concluded several agreements with Rosnefta, Sakhalin-1 LLC, and Gazprom Nafta PJSC for the production of 24.5 million tons, which expire on March 31.
Sanctions and export of Russian energy carriers
Recently, it became known that the total export of Russian oil increased to the highest level in four months.
Meanwhile, after a two-month break, India has resumed importing Russian Sokil oil.
Two oil tankers halted operations off the coast of Greece just days after the US imposed new sanctions on 14 Russian ships.
According to Bloomberg, the vessels NS Creation and "Zaliv Amursky" have stopped the transhipment of oil cargoes in the Laconic Gulf south of Greece.
