Russian crude oil ships are keeping their distance from India, payment related concerns are the reason

Russian crude oil ships are now moving away from the Indian coast due to payment concerns. Due to this, their arrival has decreased recently. Five ships carrying Sokol oil from the Russian Far East (NS Commander, Sakhalin Island, Krymsk, Nellis, and Liteiny Prospect) headed towards the Strait of Malacca at a speed of 7 to 10 knots. Have been. Another ship, NS Century, carrying Sokol oil is still held by Sri Lanka.

According to Victor Katona, a leading crude oil analyst at Kpler, China is helping by taking up unused Sokol crude oil shipments. In December, India’s oil imports from Russia, which was crucial for Moscow during the Ukraine war, fell to their lowest level since January 2023. Indian refiners are not getting any Sokol cargoes due to payment issues, Kpler reported.

The US and its allies are imposing sanctions on Russian crude oil exports that violate the $60 per barrel limit, which began in late 2022. Recently, a senior treasury official said that enforcement would be strengthened.

The NS Century, carrying about 700,000 barrels, faced US Treasury sanctions last year. The four other ships have the same capacity, and the fifth ship, Nellis, can handle double the capacity. These ships are mostly owned by Russia’s state-backed shipping company, Sovcomflot PJSC. Also, read this.