Russian Tankers Halt Off India as Sanctions and U.S. Tariff Threats Complicate Oil Trade

At least four tankers transporting Russian crude oil are currently anchored off the western coast of India as increasing sanctions and the threat of hefty U.S. tariffs disrupt oil shipments, as reported by the Indian news outlet NDTV Profit.

Two of these vessels, named Achilles and Elyte, are stationed near the Jamnagar port, where they were initially expected to arrive at the nearby Sikka terminal between Wednesday and Thursday.

The ships were filled with Urals-grade crude from Russia’s major export terminals, Primorsk and Ust-Luga, both of which face sanctions from the European Union and the United Kingdom.

In addition, two more tankers, the Destan and the Horae, are also waiting offshore. While the Destan is affected by the same EU and U.K. sanctions, the Horae currently does not face any sanctions.

These delays coincide with a notable change in India’s purchasing strategy following U.S. President Donald Trump’s threats. He has vowed to impose 100% tariffs on nations that continue importing Russian energy unless Moscow halts its military actions in Ukraine by August 8.

Trump initially set a 50-day deadline but unexpectedly shortened it to 10 days on Tuesday, condemning President Vladimir Putin for having “pleasant and respectful conversations” while simultaneously “attacking” Ukrainian cities.

In light of escalating pressure from Washington, Bloomberg reported that Indian officials have directed state-owned refiners to develop backup plans and investigate alternative crude oil suppliers, including those in the Middle East and West Africa.

This warning has seemingly had an immediate effect. Four major Indian state-run oil companies, which together represent over 60% of the nation’s refining capacity, have already ceased buying Russian crude.

Nevertheless, India’s private refineries, such as Reliance Industries and Nayara Energy — the latter of which has partial ownership by Russia’s Rosneft — continue to be the largest importers of Russian oil in the country.