New US sanctions… How do they affect Russia’s oil supplies to China and India?

Traders and analysts said in a Reuters report that Chinese and Indian refiners will buy larger quantities of oil from the Middle East, Africa and the Americas, which will raise prices and shipping costs at a time when new US sanctions on Russian oil production companies and tankers will curb supplies to Moscow’s major customers.

On Friday, the US Treasury Department imposed sanctions on the Russian oil production companies Gazprom Neft and Surgut Oil and Gas, in addition to 183 tankers working in shipping Russian oil, targeting revenues that Moscow uses to finance its war with Ukraine.

Russia used many of these ships to transport oil to India and China after Western sanctions and a price ceiling imposed by the Group of Seven major industrialized countries in 2022 diverted the path of Russian oil trade from Europe to Asia. Some of those ships also transported oil from Iran, which is also subject to sanctions.

Two Chinese trade sources told Reuters that Russian oil exports will be severely affected by the new sanctions, which will force independent Chinese refiners to reduce their production later.

Makiya participated in the consultative forum of the Islamic Development Bank Group


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