Indian refiners are seeking legal advice on buying sanctioned Russian oil under a US waiver, having already secured 20 million barrels of non-sanctioned crude to navigate supply disruptions.
NEW DELHI: Indian refiners are seeking a legal opinion on purchasing sanctioned Russian oil after Washington granted New Delhi a 30-day waiver to buy crude stranded at sea. Two government sources confirmed the move on Friday.
The US approval, valid until April 4, allows Indian refiners to buy Russian oil loaded on vessels as of March 5. This aims to ease pressure on global oil markets.
State refiners have already bought at least 20 million barrels of prompt Russian oil from vessels in international waters. This helps navigate the supply crunch triggered by the Middle East crisis.
India, the world’s third-largest oil importer, sources about 40% of its imports from the Middle East via the Strait of Hormuz. “So far refiners have bought only non-sanctioned oil,” one source said.
Refiners want to avoid complications, including payment problems, if they purchase oil linked to sanctioned entities and vessels. India was the top buyer of Russian seaborne crude after Moscow’s 2022 invasion of Ukraine.
However, its refiners began reducing purchases in January under pressure from Washington. Cutting Russian oil imports helped New Delhi avoid 25% tariffs and clinch an interim trade deal with the US.
India’s energy supply has been further hit by a stoppage of Qatari liquefied natural gas production and supply disruptions from Abu Dhabi National Oil Co. The nation has consequently cut gas supplies to industries like fertiliser plants and refineries.
Authorities have already asked refiners to boost production of liquefied petroleum gas to avoid cooking fuel shortages. The source said India will take more steps if required to prevent shortages of gasoline and gasoil.
