Anxious about the latest US sanctions on Russian oil tankers, India is keenly waiting for the Donald Trump regime, which will take charge next week, to clarify the fine-print to see how strictly the measures might be imposed.

 “After the six weeks transition period, our ports will be forced to disallow any sanctioned oil tanker that comes in from Russia for fear of being sanctioned. It could have a considerable impact on our oil imports from Moscow. The Trump government will notify the fine-print of the sanctions and it has to be seen how serious these are actually going to be when implemented,” a government official told businessline.

If Trump notifies the sanctions in such way as to ensure that these are followed in letter and spirit, India will have no choice other than cutting down on its oil imports from Russia.

Not worried

“India is not worried about any possible shortage in oil imports as it has many alternative sources including Saudi Arabia and Iraq. Two years back our imports were negligible from Russia. But if India is forced to reduce its oil imports from Russia, it is going to lose out on a source of cheap and reliable oil supplier,” the official said.

The outgoing Biden administration in the US imposed fresh sanctions on Russia last week targeting its oil exports to punish it further for its continued war in Ukraine. Sanctions were announced against Russian oil companies, Gazprom Neft and Surgutneftegas, as well as numerous vessels, oil traders, service providers and insurance companies.

According to a note by Kpler’s lead freight analyst Matt Wright, the newly sanctioned 143 oil tankers handled over 530 million barrels of Russian crude exports last year. While around 300 million barrels were shipped to China, a big portion of the remainder of barrels were carried by these sanctioned tankers to India, it added.

In 2023-24, India’s imports from Russia were valued at $61.15 billion, comprising mostly oil, while its exports were at $4.26 billion. Although Russia has subsequently reduced some of the subsidies it offered India, it still remains the largest supplier of oil to the country.