US newly sanctioned tankers shipped Russian oil to India

  Three oil tankers, recently sanctioned by Washington, have regularly transported Sokol crude from Russia’s Far East to Indian Oil Corp, the top refiner in India, in the past few months, according to ship-tracking data from LSEG, Kpler, and trade sources, The United States, aiming to close loopholes in the mechanism designed to penalize Moscow for its actions in Ukraine, imposed sanctions on Thursday on maritime companies and vessels involved in shipping Russian oil sold above the Group of Seven’s price cap. The Treasury Department identified the Liberian-flagged ships subjected to sanctions as the Kazan, Ligovsky Prospect, and NS Century. Ship-tracking data indicates that all three Aframax-sized tankers discharged Russian Sokol crude in India in September, while two of them repeated the journey in October. In the short-term, sanctions may reduce the number of ships carrying Russian oil and prompt India to seek supplies elsewhere, but they are unlikely to stop the trade altogether due to its lucrative nature, several traders who declined to be named, said. As long as there are willing buyers, sellers and shippers will always find a way to make the oil flow, one trader said. One trader also said India may seek supply from the Mediterranean and North Sea to replace Russian Sokol. NS Century is currently on its way to discharge Sokol crude at Vadinar port in Gujarat for Indian Oil Corp (IOC) on Nov. 25, LSEG and Kpler data showed. IOC buys Sokol under an annual contract with Russian oil major Rosneft (ROSN.MM). A spike in global prices led to Russian oil being sold at above the price caps imposed by western nations of $60 a barrel. The three vessels last year obtained safety certification from the Indian Register of Shipping (IRClass), according to its website. Ligovsky Prospect and Kazan, managed by Oil Tanker (SCF) Management-FZCO, were certified on Sept. 14, and May 7 last year, according to IRClass website. NS Century, managed by Dubai-based Sun Ship management (D) Ltd was certified on Sept. 15, 2022. Societies such as London-headquartered Lloyd’s Register, the American Bureau of Shipping and IRClass provide services, such as seaworthiness checks and certification, which are vital for securing insurance and entry to ports. IOC and IRClass did not immediately respond to requests for comment. Sokol crude is produced at the Sakhalin-1 project, managed by a Rosneft subsidiary after the exit of ExxonMobil (XOM.N). Prior to sanctions and restructuring of the project’s ownership, India’s ONGC Videsh, the overseas investment arm of state-run Oil and Natural Gas Corp (ONGC.NS), and Sakhalin Oil and Gas Development Co (SODECO), a consortium of Japanese firms had a stake in the project. With inputs from Reuters.