China and India, the two largest importers of Russian oil, stopped its purchase due to new US sanctions, which caused a sharp increase in tariffs for tanker transportation. About it reports Reuters .
On January 10, the United States has introduced a new package of sanctions aimed at the Russian oil supply chain. These sanctions have caused a sharp increase in freight rates for tankers that did not come under the effect of sanctions. As a result, buyers in China and India began to avoid sanctions, which made it impossible to conclude new deliveries for March.
In particular, the cost of transporting oil tankers AFRAMAX from Kozmino (RF) has increased by several million dollars. This led to the proposals for Russian oil brand ESPO Blend in China reached $ 3-5 per barrel to the Ice Brent price. Such a jump in prices caused dissatisfaction among buyers, since previous spot awards were only 2 dollars per barrel.
Bharat Petroleum Corp Ltd, CEO of the Indian Company Petroleum Corp Ltd, has not received new proposals for March Russian oil supplies. Supply is also expected to be reduced compared to the previous months.
Last year, 36% of raw oil imports to India were Russian oil, while China consumed almost a fifth of all exports of the Russian Federation. However, US sanctions have affected tankers that carry about 42% of Russian maritime exports.
According to India Minister Pankadja Jain, the United States warned India that Russian oil tankers should be unloaded by February 27. In addition, all oil payments on these vessels must be made by March 12.
Demand for Russian oil has also declined due to the strengthening of prices for Iranian oil and seasonal demand growth.
