New Delhi (Agencies): India, the world’s third-largest oil importer, expects no disruptions in its Russian oil imports over the next two months despite stringent new sanctions imposed by the US and UK targeting Moscow’s energy sector. A senior Indian government official, speaking to Reuters, confirmed that US-sanctioned tankers are permitted to discharge crude until March, minimizing immediate supply risks.
“The market is waiting for Russia to respond on sanctions. Russia will find ways to reach us,” the official stated, signaling confidence in Moscow’s ability to maintain oil exports to its key markets, including India and China.
The latest sanctions, announced last week, target Russian petroleum producers Gazprom Neft and Surgutneftegaz, along with 183 vessels involved in transporting Russian crude. These measures have raised concerns over potential disruptions in Moscow’s oil supply to its largest buyers, China and India, which together account for a significant portion of Russia’s export market.
China and India, according to reports from Bloomberg and Reuters, are now exploring alternative sources of crude, including supplies from West Asia, the Americas, and Africa.
Chinese Foreign Ministry spokesperson Guo Jiakun on Monday criticized the sanctions, calling them an example of “illegal unilateral sanctions and long-arm jurisdiction” and reaffirming Beijing’s opposition to US economic restrictions.
The sanctions have already influenced global oil markets, pushing Brent crude prices above $81 a barrel. Analysts suggest that while the sanctions may disrupt Russia’s so-called “shadow fleet” of tankers, Moscow could still find ways to export oil.
According to Citigroup, up to 30% of Russia’s shadow fleet could be affected, potentially disrupting 800,000 barrels per day of crude supplies. However, the actual impact may be significantly lower. Goldman Sachs has maintained its outlook for Russian oil supply, indicating that lower prices may continue to incentivize buyers.
India’s reliance on Russian oil, which offers significant cost advantages, has grown substantially over the past year. Both India and China are expected to closely monitor the evolving sanctions landscape while balancing their energy needs with geopolitical considerations.
Moscow has labeled the sanctions as a deliberate attempt to harm its economy “at any cost, even at the risk of destabilizing global markets.” For India, maintaining stable crude supplies will be critical to shielding its economy from potential shocks.