NEW DELHI: India mentioned on Friday it’s in contact with Washington to make clear points associated to the influence that the newest US sanctions on Russian oil producers, service suppliers and oil-carrying vessels may have on Indian corporations.
On January 10, the US treasury division imposed sweeping sanctions on two oil producers, 183 vessels and Russia-based oilfield service suppliers. (REUTERS FILE PHOTO)
On January 10, the US treasury division imposed sweeping sanctions on oil producers Gazprom Neft and Surgutneftegas, 183 vessels which have been used to ship Russian oil and Russia-based oilfield service suppliers. US officers mentioned the transfer focused revenues that Russia has been utilizing to fund its conflict with Ukraine.
“These additional sanctions pertain to several entities and individuals in the Russian energy sector. We are in touch with the US authorities to clarify issues pertaining to the impact on Indian entities,” exterior affairs ministry spokesperson Randhir Jaiswal advised a daily media briefing.
On the similar time, the exterior affairs ministry is working with all related departments and businesses to “sensitise Indian companies on applicable provisions”, and likewise to tell them about “new measures being implemented that could impact Indian companies in certain circumstances”, he mentioned.
Requested in regards to the influence of the brand new US sanctions, Jaiswal indicated that India had no plans to cut back oil purchases from Russia. “Our oil purchases have been and always are guided by our own energy security requirements, along with prevailing global circumstances and market conditions,” he mentioned.
India stepped up purchases of discounted Russian commodities, particularly crude and fertilisers, after the US and its European companions imposed sanctions on Russia over the invasion of Ukraine in February 2022. Russia is now among the many high two power suppliers for India, and this has resulted in bilateral commerce ballooning to $65.7 billion in 2023-24.
The acquisition of Russian crude continued even after the G7 imposed a value cap of $60 per barrel in the direction of the tip of 2022.
In addition to Russian oil majors Gazprom Neft and Surgutneftegas, the newest US sanctions imposed within the final days of the Joe Biden administration have focused 183 oil tankers, a lot of them a part of the “shadow fleet”, opaque merchants of Russian oil and Russia-based oilfield service suppliers.
Individuals accustomed to developments mentioned on situation of anonymity that the sanctions will influence two oil producers who don’t account for a majority of the crude produced by Russia and solely a sure variety of vessels.
“We have to abide by the price cap but there could be many more vessels and service providers. We are still assessing the impact of these sanctions,” one of many folks cited above mentioned.
Nevertheless, lots of the tankers which have been hit by the brand new US sanctions have been used to ship oil to India and China as Western sanctions and the G7 value cap shifted commerce in Russian oil from Europe to Asia.