India demands that Russian oil suppliers comply with sanctions

India, the world's No.2 importer of crude oil from Russia, wants to buy Russian oil only if it is supplied by companies and ships that have not been sanctioned by the United States. India, the No. 2 importer from Russia of crude oil, will only buy Russian oil if the oil is supplied by ships and companies that are not sanctioned by America, according to the oil secretary.

The escalating sanctions imposed by the west, including the United States, on Moscow have disrupted global oil markets and forced those who bought discounted Russian crude at a discount to find other ways to keep their purchases.

On the fringes of the India Energy Week, Pankaj Jain said late Wednesday that it was the responsibility of suppliers to deliver something that met his requirements.

The comments of the Indian official are the strongest statement made so far on the position of the third largest oil consumer and importer in the world on Russian oil trade.

India has become the largest buyer of Russian oil shipped by sea at a discounted price after Western nations implemented sanctions against Moscow and reduced their energy purchases as a response to Russia's invasion in Ukraine in 2022.

India is more likely to follow the United Nations sanctions than the sanctions imposed by other countries. However, the fear of secondary sanctions imposed by the United States can create operational difficulties in the process of securing Russian Oil, as Indian companies and banks are heavily exposed to the U.S. Financial System.

After Washington's last-month sanctions targeting Russia's supply chain of oil, the purchase of Russian oil by India's refiners has been affected. Tanker freight rates have soared as some buyers in China and India avoided sanctioned vessels.

Jain stated that Indian companies deliver oil to their destination port, not the port of export.

He said that if a cargo meets their internal diligence requirements, they would accept it.

Suppliers must meet my internal compliance and due diligence requirements, as they are coming to my door.

Officials from India's refinery have said that they have informed Russian oil traders and suppliers that they should ensure the oil they supply meets the parameters of U.S. sanctions.

We don't want any risk. "We will not touch any cargo that includes sanctioned entities or ships in the chain of supply," said an Indian refinery official.

They declined to name the officials as they weren't authorised to talk to media.

Another official said, "We are merely a buyer. Clean logistics must be organized by the sellers."

According to officials, Indian companies met with the Russian business delegation earlier this week at a conference.

Jain stated that Russian energy companies, including Novatek and Sber Bank, were interested in collaborating on projects with Indian companies. Reporting by Nidhi verma, Shariq khan, and N R Sethuraman

(source: Reuters)