Indian Refiners Reject Russian Cargoes, Including Prometei Off Mundra
Indian refiners are turning away Russian cargoes, including one from the Prometei, which has been drifting off Mundra port since October 26. This comes despite steady Russian oil exports via western ports and India's status as the largest buyer of Russian seaborne oil.
The Prometei, loaded with around 40,000 tons of crude oil at Ust-Luga, Russia, was prevented from docking at Mundra due to Indian refiners' decision to avoid cargoes linked to newly sanctioned Russian energy firms. This move aligns with US sanctions on Rosneft and Lukoil, which have led HPCL-Mittal Energy and other Indian refiners to halt purchases from sanctioned entities.
Meanwhile, overall Russian oil and oil product exports via western ports have remained steady, with flows in October holding at roughly 2.33 million barrels per day. India, however, has reduced its Russian crude purchases, prompting another Russian vessel, Furia, to reverse course off Germany's coast. India's imports of Russian oil have fluctuated between 1.6 million and 2 million barrels a day since the war in Ukraine began. In October, India loaded around 185,000 tons of naphtha, much of which is still en route.
The Prometei's situation follows a recent incident where a Russian-flagged oil tanker under international sanctions briefly blocked the Suez Canal after running aground due to engine failure.
The Prometei's predicament highlights the complex geopolitical landscape surrounding Russian oil exports. While overall exports remain steady, individual cargoes face rejection due to sanctions. Payment processing for Russian oil exports may also become challenging, potentially increasing transaction costs.
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