New US sanctions against russia will force China and India to look for other oil suppliers

The US Treasury Department imposed sanctions against russian oil companies Gazprom Neft and Surgutneftegaz, as well as 183 vessels that delivered russian oil to other countries.

Many of these tankers were used by russia to deliver oil to India and China, as Western sanctions and price caps imposed by the Group of Seven countries in 2022 shifted russian oil trade from Europe to Asia.

Some tankers also transported oil from Iran, which is also under sanctions.

According to the interlocutors, russian oil exports will be severely affected by the new sanctions, which will force Chinese independent refiners to further reduce refining production.

Among the vessels targeted by the US sanctions, 143 are oil tankers that shipped more than 530 million barrels of russian crude oil last year, accounting for about 42% of the country's total maritime crude oil exports.

Of that, about 300 million barrels were shipped to China, with the bulk of the rest going to India.

A Singaporean trader said that authorized tankers delivered about 900,000 barrels of russian oil per day to China over the past 12 months.

It is noted that in the first 11 months of last year, russian oil imports to India increased by 4.5% compared to the same period in 2023 to 1.764 million barrels per day, or 36% of India's total imports.

China's volume, including pipeline deliveries, increased by 2% to 2.159 million barrels per day, or 20% of total imports, over the same period.

Source: Reuters