India Slams the Brakes on Russian Oil, Sending a Shockwave Through the Global Energy Market

Due to worries over oil payments to Moscow, which caused a decline in arrivals last month, some Russian warships that were storing fuel off the coast of India are now sailing eastward, according to Bloomberg.

According to Viktor Katona, chief crude analyst at data intelligence provider Kpler, India's oil imports from Russia, which was crucial for Moscow during the conflict in Ukraine, dropped in December to their lowest point since January 2023. Local refiners were unable to receive a single Sokol cargo because of payment problems.

Sanctions have been levied by the US and its allies on organizations that are thought to have violated the $60 per barrel cap on Russian oil exports, which went into force in late 2022.

A top Treasury official stated last month that enforcement would increase.

According to vessel-tracking data, five ships—the NS Commander, Sakhalin Island, Krymsk, Nellis, and Liteyny Prospect—all transporting Sokol oil from Russia's Far East are approaching the Malacca Strait at a speed of seven to ten knots.

The NS Century, a sixth that is likewise holding Sokol, is still near Sri Lanka.

Viktor Katona stated, "China appears to have intervened to save the idle Sokol cargoes."

About 700,000 barrels are transported by the NS Centur, which was sanctioned by the US Treasury last year.

The Nellis is the fifth vessel, with a capacity of double that of the other four, all carrying quantities comparable to hers.

The majority of the vessels are held by Sovcomflot PJSC, a state-backed maritime business in Russia.