India to Block US-Sanctioned Russian Oil Tankers from Entering Ports

India plans to block oil tankers sanctioned by the United States for transporting Russian crude, following the US announcement of its most stringent sanctions yet, targeting over 160 tankers, traders, and insurers involved in Russian oil exports, according to Bloomberg on January 13.

The sanctions have sent oil prices soaring above $80 per barrel. A senior Indian official, speaking anonymously due to the sensitivity of the matter, stated that vessels under sanction will be barred from discharging oil at Indian ports. Exceptions will be made for tankers chartered before January 10, provided they unload by March 12.

An official outlined the potential repercussions of the sanctions, noting that while global oil supply remains ample—with OPEC  holding 3 million barrels per day of spare capacity and non-OPEC producers like the US, Canada, Brazil, and Guyana able to increase output—the sanctions could still disrupt trade flows. Despite this, the official downplayed the likelihood of sustained high prices, predicting that the rally above $80 per barrel would be short-lived.

India, a key buyer of Russian oil, is closely monitoring the situation. Indian refiners, who may lose the price advantage they once enjoyed on Russian oil if supplies tighten, are preparing to negotiate term supply deals with Middle Eastern suppliers and may seek additional barrels if necessary.

Additionally, India is evaluating the future of its state-owned stakes in Russia’s Vostok Oil project, which is now under sanction. Indian banks are also expected to require certificates of origin for crude imports to ensure compliance with the sanctions.

“Russia has yet to communicate its position on the sanctions, but they are likely to adapt,” the source added.

Earlier, reports emerged that three Russian shadow fleet tankers carrying over 2 million barrels of crude oil remain stranded off the coast of eastern China after being hit by US sanctions.