Indian officials said they expect oil imports from Russia will drop to 800,000 barrels a day this month, after they tightened checks to ensure compliance with Western curbs. 

Increased scrutiny at ports and from banks has been rolled out in recent weeks, the officials said, asking not to be named discussing sensitive information. India took around 1.9 million barrels a day of Russian oil in November, they said. Data firm Kpler said last week that shipments could be about 1.3 million barrels a day this month.

The stricter checks come as New Delhi tries to clinch a broader trade deal with the US, which slapped 50% tariffs on all Indian goods in August, partly as punishment for the country’s buying of Russian oil. Crude that’s not subject to restrictions continues to flow, while traders and refiners are looking for workarounds for the sanctioned barrels that the Indian authorities have been clamping down on.

India’s foreign and oil ministries didn’t immediately respond to Bloomberg requests for comments.

The oil market is focused on the fate of Russian exports after Washington imposed sanctions on Rosneft PJSC and Lukoil PJSC in October in a bid to curb the Kremlin’s funds for the war in Ukraine. That’s left Indian refiners to tap exports from non-sanctioned Russian entities, as well as seeking more expensive alternatives from rival producers at a time of ample global supply.

Four out of India’s seven largest refiners remained in the market for non-sanctioned Russian crude as deep discounts push buyers to seek barrels, people involved in the purchases said last week. They included Indian Oil Corp. and Bharat Petroleum Corp., which did not respond to requests for comment at the time.

Port checks on so-called shadow-fleet tankers have been stepped up, while banks have increased scrutiny of payments, the Indian officials said this week. As part of the latest moves, the shipping ministry ramped up inspections to restrict so-called shadow-fleet tankers by seeking certificates of origin, flag-registry data, and other documentation, they said. 

All Indian refiners except Rosneft-backed Nayara Energy Ltd. have cut imports from Russia, the officials said. Nayara increased volumes as European Union sanctions have made it reliant on Moscow for feedstock, they said. 

Source: The Hindu Business Line 

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