Overview

• India, the world's third-largest oil consumer, insists on receiving Russian oil only through non-sanctioned entities and vessels to avoid secondary sanctions by the U.S.
• Recent U.S. sanctions targeting Russian oil tankers and supply chains have increased shipping costs and complicated logistics for buyers like India and China.
• Russia faces reduced exports, growing oil storage challenges, and potential production cuts as sanctions and Ukrainian drone attacks disrupt operations.
• Indian refiners are diversifying supply sources, turning to Middle Eastern oil as Russian crude discounts narrow and logistical hurdles grow.
• Russia maintains its energy trade with India, emphasizing economic pragmatism, but acknowledges the need for time to assess the full impact of the latest sanctions.