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Indian Ownership of Crude Cargo Ships Would Curtail Effect of Western Sanctions: Analyst

© AP PhotoAn oil tanker is moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11, 2022.
An oil tanker is moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11, 2022. - Sputnik India, 1920, 18.09.2023
Alongside China, India has emerged as a major market for Russian crude as a result of the US-led economic sanctions on Moscow, imposed in retaliation for its special military operation in Ukraine.
The West has continued to try to prevent India and other countries from buying Russian oil through imposing sanctions on Russian ships carrying oil and gas. By its actions, the collective West threatens the energy security of developing nations as well as the entire world.

However, Indian refiners could soften the blow Western sanctions have had on its economy if the country bought the ships to transport crude, an oil analyst has said.
The comments of Arpit Chandna, an expert in crude commodities associated with global data-tracking firm Refinitiv, come as reports emerge that the Indian government is pushing state-run oil companies to buy a fleet of ships to transport crude and gas from oil-producing nations, particularly from Russia.

Western Ban on Use of Russian Ships For Transport of Crude, Gas

The main reason for this reported development could be the Western-imposed embargo on Russian ships for the movement of cargoes of oil and gas from the Eurasian nation.
Arpit pointed out that Western sanctions and capped prices on Russian crude Ural have made the supply side tighter for global oil consumers, especially at a time of extended crude production cuts by OPEC+ nations which are likely to last until the end of this year.
That's why, according to him, major oil consumers, including India, are likely to continue imports of Russian Urals to meet their energy needs.

"The Chinese import of Urals has also started to pick up in recent months dodging the sanctions but still the recent actions from the West would have to be carefully watched as the market is already witnessing a high price surge in benchmark crudes," Arpit told Sputnik on Monday.

Indian Refiners Expanding Footprint in Petrochemical Sector

The expert stressed that Indian refiners are at present stepping up their footprints in the petrochemical sector by way of adding new units and investments in enhancing existing infrastructure which would necessitate a secured and continuous energy supply.

Furthermore, the mentioned steps by state-owned oil and gas companies in India look more like optimising shipment costs and reducing the sector's dependency on transportation/shipping companies.

In Arpit's view, the cost of the shipment and developing their own fleet by Indian refiners are in line with achieving the country's energy security objectives.

Thrust on Achieving Energy Security

"The way New Delhi and Moscow have supported each other in recent months, it will be beneficial for both countries in the long run to hold a stable mode of trade flow," he asserted.

The petroleum specialist noted that so far both governments have managed to shrug off Western restrictions and having a direct mode of transport should further curtail the effect of Western actions.
OPEC - Sputnik India, 1920, 18.09.2023
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