India’s largest company refused to accept Sovcomflot tankers – Kommersant

India’s largest oil refining operator Reliance Industries refused to accept Sovcomflot tankers (MOEX: FLOT) due to US sanctions, the agency reports Reuters with reference to sources. In February, the United States imposed sanctions against Sovcomflot and 14 oil tankers carrying Russian fuel.

“We prefer that refineries not transport oil to sanctioned vessels due to our political and commercial interests and US sanctions,” an Indian government source said. He stressed that the government will decide on the admission of ships subject to sanctions to the ports.

According to the agency, Indian refineries, “seeking to avoid a negative reaction from Washington, are acting increasingly cautiously.” Sources said more Indian oil companies are considering abandoning sanctioned tankers, which would increase freight costs and impact the Russian oil market.

On February 23, the US Treasury imposed additional sanctions against the Russian Sovcomflot. The shipping company was moved from the NS-MBS (Non-SDN Menu-Based Sanctions List) to the SDN list, which implies a tightening of the sanctions regime. According to the agency, against the backdrop of increasing sanctions against owners of tankers transporting Russian oil at prices above the ceiling, sharply grew share of shipments without a specific port of destination.

Read more about the sale of Russian oil in India in the material “They cut off bonuses from Russia.”

Alexandra Goroshilova