The comprehensive US sanctions imposed on Russia’s oil sector have started affecting the arrival of crude oil in India. Public sector Bharat Petroleum Corporation Limited (BPCL) has said there is not enough cargo available for March supplies. On January 10, the US had announced comprehensive sanctions targeting the Russian energy sector.
These include sanctions on Russian oil producers Gazprom Neft and Surgutneftgas, blacklisting 183 vessels involved in Russian energy exports and sanctions on dozens of oil traders, oilfield service providers, tanker owners and managers, insurance companies and energy officials.
The restrictions were announced at a time when India’s oil refining companies were beginning negotiations for March cargoes. BPCL Director (Finance) V Ramakrishna Gupta said in a call with analysts on Thursday that Russian oil had been booked for January and February in the last two months but it was not getting enough cargo for March supplies.
He said the share of Russian oil in crude oil supply is expected to fall from 31 percent in the October-December quarter to 20 percent in the March quarter. At the beginning of the current financial year in April 2024, the share of Russian oil in the total oil refined by BPCL was 34-35 percent.
Amidst the fear of disruption in oil supply from Russia, Gupta said that there is enough oil available in the market and the company can turn to West Asian countries to compensate for this loss.