US-Sanctioned Tankers Allegedly Provide Russian Oil Supply to India
According to shiptracking data from LSEG, Kpler, and trade sources, three oil tankers that were recently sanctioned by the U.S. regularly shipped Sokol crude from Russia’s Far East to Indian Oil Corp (IOC.NS), India’s top refiner, in recent months.
The U.S. imposed sanctions on these maritime companies and vessels for shipping Russian oil sold above the Group of Seven’s price cap as part of efforts to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine.
The sanctioned Liberian-flagged ships are the Kazan, Ligovsky Prospect, and NS Century, according to the Treasury Department. These Aframax-sized tankers discharged Russian Sokol crude in India in September and two of them made the trip in October.
While sanctions may temporarily reduce the number of ships carrying Russian oil and prompt India to seek supplies elsewhere, it’s unlikely to stop the trade altogether due to its lucrative nature. Traders suggest that, as long as there are willing buyers, sellers, and shippers, the oil flow will find a way to continue.
Some traders also speculate that India may seek supplies from the Mediterranean and North Sea to replace Russian Sokol.
The Sokol crude is produced at the Sakhalin-1 project, managed by a Rosneft subsidiary, following the restructuring of the project’s ownership. Prior to sanctions, India’s ONGC Videsh and a Japanese consortium had a stake in the Sakhalin-1 project.
