Russian Oil Tanker To India Makes U-Turn Amid U.S. Sanctions

Oil Shipment Disruption Under U.S. Sanctions

The United States has slapped tough sanctions on Russian oil firms after persistent friction over the Ukraine war. The sanctions impacted the normal supply of Russian crude to India. A Russian oil tanker reportedly changed course in mid-sea and reversed direction while on transit via the Baltic Sea. Tracking data indicate the tanker reduced speed after sailing west via the Danish-German strait.

Impact on Indian Refiners

Industrialist Lakshmi Mittal's energy arm, ArcelorMittal Energy, has continued to buy Russian oil in spite of these sanctions. The Guru Gobind Singh Refinery in Punjab, owned by Mittal Energy, imported four consignments of Russian crude this year, the Financial Times reported. The refinery, which is among India's ten largest, refines about 11.3 million tonnes of crude oil every year. It is equally owned by Hindustan Petroleum Corporation Limited (HPCL) and the Mittal Group.

Sanctioned Ships and Hidden Shipments

American media reports say U.S.-blacklisted ships carried Russian oil from the Arctic port of Murmansk to the Gulf of Oman during July-September. The ships were accused of using misleading techniques to conceal their cargo transactions. Reports were authenticated with shipping data, customs records, and satellite photos. Those organizing the shipments are unknown.

New American Sanctions and Their International Consequences

On October 22, the U.S. government banned American businesses and individuals from buying oil from Russian oil majors Rosneft and Lukoil and their subsidiaries. Non-American parties conducting business with these companies are also subject to potential sanctions. The U.S. has instructed that all existing business with them be wrapped up by November 21.

Today, Russia provides nearly a third of India's crude oil imports. The European Union has also imposed economic sanctions, in agreement with the United States. Analysts say that though sanctions on Russia are nothing new, those now imposed are among the strongest ever implemented.