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Russian oil cargoes race to India as sanctions deadline nears
The clock is ticking for India-bound tankers carrying millions of barrels of crude from blacklisted Russian suppliers Rosneft PJSC and Lukoil PJSC, with a wind-down period for US sanctions set to end this Friday.
At least 7.7 million barrels of Russia’s flagship Urals crude linked to the two sanctioned producers are set to reach India’s shores after the US restrictions take effect on Nov. 21, according to data from Kpler Ltd. That raises questions on whether the crude will be able to discharge smoothly, given the deadline.
The data showed most of the tankers are heading either to Reliance Industries Ltd.’s Jamnagar refinery or Rosneft-linked Nayara Energy Ltd.’s Vadinar port. Delivery dates range from the end of November and into December. Destinations can change during a ship’s voyage.
The traders are keeping close tabs on shipments of sanctioned Russian oil to major buyer India to gauge its near-term demand for alternatives. New Delhi has been under pressure from Washington, which says the purchases help fund Moscow’s war in Ukraine.
Five of India’s seven refiners, including Reliance, had earlier said they would completely stop taking delivery of Russian crude after Nov. 21. State-run Indian Oil Corp. will continue buying non-sanctioned grades, while Nayara — which relies entirely on Russian supplies — is still lifting cargoes.
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