Sanctioned Russian Oil Tankers Get Temporary Reprieve in India
By Michael Kern - Jan 24, 2025
India has been granted permission to unload sanctioned Russian oil at its ports until February 27.
The US sanctions have disrupted India's access to cheap Russian oil, and Indian refiners are scrambling for alternative supplies.
India will continue to buy Russian oil only if it meets certain conditions, including a price cap of $60 per barrel and the use of non-sanctioned tankers.
India has received clarification from the U.S. that the Russian oil tankers sanctioned earlier this month are allowed to discharge their crude at Indian ports until February 27, Indian oil secretary Pankaj Jain said on Friday.
“There was a round of clarification by OFAC (the U.S. Office of Foreign Assets Control). Formally they did clarify that Feb. 27 is the deadline,” Reuters quoted the Indian official as telling reporters in response to questions about the end of the wind-down period.
The wind-down deadline for completing the financial transactions is March 12, according to Jain.
The outgoing U.S. Administration on January 10 imposed the most severe sanctions on Russia’s oil yet, designating two major Russian oil companies, Gazprom Neft and Surgutneftegas, as well as 183 vessels, dozens of oil traders, oilfield service providers, insurance companies, and energy officials.
The sanctions caught a few million barrels of crude oil en route to India in a precarious situation.
At least 4.4 million barrels of crude from Russia are currently being shipped to India, according to ship-tracking data compiled by Bloomberg and Kpler. Some of these are traveling on newly-sanctioned tankers and the fate of part of the cargoes is unknown.
For India, which imports more than 80% of the crude it consumes daily, the costs are spiking and the cheap Russian barrels are disappearing as Indian refiners steer clear of tankers explicitly sanctioned by the U.S.
The U.S. clarification about the deadline for sanctioned vessels to discharge their crude could be a relief for India, for the next month at least.
But Indian refiners are already scrambling for supply for arrival after February.
India will continue to buy Russian oil if it is sold below the $60 per barrel price cap and delivered on non-sanctioned tankers and without any involvement of sanctioned companies or individuals, the Indian official said today.
By Michael Kern for Oilprice.com
India has been granted permission to unload sanctioned Russian oil at its ports until February 27.
The US sanctions have disrupted India's access to cheap Russian oil, and Indian refiners are scrambling for alternative supplies.
India will continue to buy Russian oil only if it meets certain conditions, including a price cap of $60 per barrel and the use of non-sanctioned tankers.
India has received clarification from the U.S. that the Russian oil tankers sanctioned earlier this month are allowed to discharge their crude at Indian ports until February 27, Indian oil secretary Pankaj Jain said on Friday.
“There was a round of clarification by OFAC (the U.S. Office of Foreign Assets Control). Formally they did clarify that Feb. 27 is the deadline,” Reuters quoted the Indian official as telling reporters in response to questions about the end of the wind-down period.
The wind-down deadline for completing the financial transactions is March 12, according to Jain.
The outgoing U.S. Administration on January 10 imposed the most severe sanctions on Russia’s oil yet, designating two major Russian oil companies, Gazprom Neft and Surgutneftegas, as well as 183 vessels, dozens of oil traders, oilfield service providers, insurance companies, and energy officials.
The sanctions caught a few million barrels of crude oil en route to India in a precarious situation.
At least 4.4 million barrels of crude from Russia are currently being shipped to India, according to ship-tracking data compiled by Bloomberg and Kpler. Some of these are traveling on newly-sanctioned tankers and the fate of part of the cargoes is unknown.
For India, which imports more than 80% of the crude it consumes daily, the costs are spiking and the cheap Russian barrels are disappearing as Indian refiners steer clear of tankers explicitly sanctioned by the U.S.
The U.S. clarification about the deadline for sanctioned vessels to discharge their crude could be a relief for India, for the next month at least.
But Indian refiners are already scrambling for supply for arrival after February.
India will continue to buy Russian oil if it is sold below the $60 per barrel price cap and delivered on non-sanctioned tankers and without any involvement of sanctioned companies or individuals, the Indian official said today.
By Michael Kern for Oilprice.com
Russian Tanker Abandoned in Poland Draws Renewed Interest
A Russian-registered product tanker languishing in the Port of Gdynia is drawing renewed interest from Polish authorities. According to a report on Poland’s Radio ZET, new security concerns as well as safety issues with the tanker were raised in light of the ongoing investigation in Finland into the Eagle S tanker and a lack of maintenance on the vessel which has been docked in Gdynia since 2017.
The product tanker Khatanga (23,000 dwt) was detained at the Port of Gdynia in October 2017 after a failed Port State inspection. Structural issues were identified during the inspection along with questions regarding the training and competence of the crew. Owned by the Murmansk Shipping Company, the vessel was being held pending repairs.
The Murmansk Shipping Company however in 2020 declared bankruptcy with control of the vessel passing to the trustee for the company. The radio report says the owners have periodically checked on the vessel but appear to have lost interest. From the report, it does not appear to have even a skeleton crew aboard.
During recent winter storms, the tanker parted its lines on December 15 and again on January 12. The report says an offshore service vessel docked nearby raised the alarm fearing the tanker would drift and hit the service ship. Tugs from the Port of Gdynia were able to secure the vessel with the port telling the radio reporter that the situation was controlled and the vessel was not posing a threat to the port.
Poland’s Military Counterintelligence Service (SKW) and the Internal Security Agency (ABW) however are reported to now be looking into the circumstances surrounding the tanker. Radio ZET says that members of parliament from the Special Services Committee have also become interested in the case of the Khatanga.
The Gdynia Seaport Authority reports it has taken legal action to resolve the vessel which is languishing in the port. They have reportedly explored moving to seize the ship for the debt owed by the owners for unpaid port fees.
Under Polish law, the authorities have not been able to inspect the ship. The radio report highlights safety concerns because the oil tanks have not been degassed creating the possibility that explosive gasses have built up onboard.
Radio ZET also points to the strategic nature of the Port of Gdynia including its role as a main port for the Polish Navy. They also report that NATO equipment is transshipped at the Baltic Container Terminal. With the revelations that the Eagle S was loaded with Russian spying equipment, they are questioning what could be aboard the Khatanga.
Another possible course of action being explored is adding the shipping company to the list of sanctions. That would also allow the Polish authorities to take over the Khatanga.
For now, the Khatanga continues to languish at its berth in the Port of Gdynia. Brokers list the vessel as potentially for sale.
(Top photo in Gdynia harbor in July 2020 by Braveheart - CC BY-SA 4.0)
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