Russia, Oct 31: A tanker carrying crude oil to India suddenly changed course in the Baltic Sea, raising concerns about potential disruptions in oil trade between India and Russia, Bloomberg reported on Wednesday.
The move comes after fresh US sanctions on Russian oil companies have led to growing uncertainty among Indian refineries that rely on Russian supplies at discounted prices.
According to the report, the vessel, identified as Furia, was scheduled to load about 730,000 barrels of Ural crude oil from the Russian port of Primorsk and reach India's Sikka port in Gujarat. However, after reaching the Fehmarn Belt between Denmark and Germany, the tanker abruptly changed course to Port Said in Egypt. Industry trackers have said the development could reflect difficulties in shipping, insurance or compliance caused by the latest sanctions.
The US sanctions targeting major Russian energy companies including Rosneft and Lukoil require all ongoing transactions to be terminated by November 21. This has cast a shadow over India’s ability to continue large purchases of Russian oil, a key component of its energy security strategy from 2022.
Indian refiners, both private and state-owned, are now reviewing deals with Russian suppliers. Early indications are that India’s imports of Russian oil could fall sharply, to near zero in the short term. Companies such as Reliance Industries, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, which account for the majority of the country’s refining capacity, are expected to feel the impact.
After the Ukraine war, India has emerged as one of the largest buyers of Russian crude. It benefits from deep discounts that have helped reduce import bills and improve refining profits.
These developments pose economic and strategic challenges for India. While the country is not directly bound by US sanctions, the global nature of shipping, banking and insurance has made it imperative for Indian refiners to tread carefully to avoid secondary sanctions or disruptions to payment mechanisms. The government is expected to monitor developments closely as refiners seek clarity from suppliers and regulators.
The incident highlights a shift in global oil dynamics. As geopolitical tensions and sanctions reshape trade flows, energy importers like India face the complex task of balancing cost, security and diplomatic considerations.