By Nidhi Verma, Shariq Khan and Sethuraman N R
NEW DELHI (Reuters) – India, the No. 2 importer of crude from Russia, wants to buy Russian oil only if it is supplied by companies and ships that have not been sanctioned by the United States, the country’s oil secretary said.
Widened sanctions on Moscow by western countries including the United States have roiled global oil trade and forced buyers of discounted Russian crude to find new ways to maintain their purchases.
“It is the responsibility of the supplier to deliver to me something that meets my requirements of compliance,” Oil Secretary Pankaj Jain told Reuters on the sidelines of the India Energy Week conference late on Wednesday.
The Indian official’s comments are the strongest declaration so far by the world’s third largest oil importer and consumer on the country’s position on Russian oil trade.
India became the biggest buyer of Russian seaborne oil sold at a discount after Western nations imposed sanctions on Moscow and curtailed their energy purchases in response to Russia’s invasion of Ukraine in 2022.
India follows United Nations sanctions, rather than those imposed by individual countries, but fears of secondary sanctions by the United States create operational challenges in securing Russian oil as Indian banks and companies have significant exposure to the U.S. financial system.
Purchase of Russian oil by India refiners have been hit after Washington’s sanctions last month targeting Russia’s oil supply chain, which caused tanker freight rates to soar as some buyers and ports in China and India avoided sanctioned ships.
Indian companies take delivery of oil at their import destination, not at the port of export, Jain said.
“If there is a cargo which is meeting their internal diligence requirements they will accept it,” he said.
“My internal compliance and diligence requirements have to be met by any supplier, because it is coming to my doorstep.”
Indian refining officials said they have told Russian oil suppliers and traders that the oil they sell should comply with parameters of the U.S. sanctions.
“We don’t want to take risk. We are not going to touch any cargo that involves sanctioned entity or ships in the supply chain,” said one of the Indian refining officials.
The officials declined to be named as they were not authorised to speak to media.
“We are only a buyer and clean logistics have to be arranged by sellers,” said another official.
Indian companies met the Russian business delegation at the conference earlier this week, according to the officials.
Jain said Russian companies including Novatek and Sber Bank were looking to collaborate on projects with Indian energy companies.
(Reporting by Nidhi Verma, Shariq Khan, and N R Sethuraman)
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