Indian Oil Corporation (IOC) has resumed its purchases of Russian crude oil delivered via a tanker owned by Sovcomflot PJSC, marking a significant shift in oil trade between Russia and India, according to a report by news agency Bloomberg. This development comes after tightened US sanctions disrupted oil shipments earlier this year.
The Suezmax tanker Vladimir Tikhonov discharged about 1 million barrels of Russian Urals crude at Paradip port on Thursday. Paradip is home to one of IOC's refineries, according to Bloomberg ship-tracking data. This marks the first crude delivery by a Sovcomflot-owned tanker since another smaller vessel, SCF Baltica, offloaded fuel oil last week off Sikka in Gujarat. IOC has not responded to Bloomberg’s request for comment on the matter.
The acceptance of Sovcomflot tankers by Indian Oil, the country's largest refiner, could set a precedent for other smaller refiners in the region to follow suit. Since the US and the Group of Seven nations imposed tighter sanctions in February to curb Russia's ability to evade a crude price cap, Indian refiners initially hesitated to receive oil transported by Sovcomflot tankers.
However, Indian refiners have become more comfortable with purchasing Russian crude, including using Sovcomflot tankers, following a visit by US officials to New Delhi last month. The officials noted that they did not expect India to cease buying Russian oil, as maintaining energy supply is in Washington's interest to avoid market shocks.
India's daily crude imports from Russia reached over 1.9 million barrels in April, the highest level since July, according to data from Kpler. Deliveries of Urals and Sokol crude have increased notably on a monthly basis.
At least five Sovcomflot tankers carrying Urals crude are scheduled to arrive in India this month, with the tanker Suvorovsky Prospect already anchored off the country's west coast, according to Bloomberg ship tracking data.