China and India have suspended purchases of Russian oil for March delivery due to a surge in freight costs for tankers unaffected by U.S. sanctions, Reuters reported, citing traders familiar with the matter.
According to the traders, the premium for Russian ESPO crude has risen by $3–5 per barrel compared to ICE Brent, while freight rates for Aframax tankers on routes to China have increased by "several million dollars."
On January 10, the United States imposed its "most significant sanctions" on Russia's energy sector. The measures targeted companies such as Gazprom Neft and Surgutneftegas, their subsidiaries, and over 180 vessels that Washington identified as part of Moscow's "shadow fleet" for transporting fuel. As a result, refineries in China and India are expected to boost imports from the Middle East, Africa, and the Americas, potentially driving up fuel and freight costs, Reuters noted. Several Chinese and Indian importers have reportedly refused to accept tankers affected by the sanctions.
In 2024, 36% of India’s oil imports and nearly one-fifth of China’s imports came from Russia. India’s Deputy Minister of Petroleum and Natural Gas, Pankaj Jain, stated that the U.S. had demanded Russian oil tankers be unloaded by February 27, with payments completed by March 12 under the new sanctions regime. Reuters added that vessels in China are encountering delays in offloading fuel.
Russia has deemed the Western sanctions illegal and has called for their repeal. Kremlin spokesperson Dmitry Peskov said halting traditional fuel supply routes was impossible. “If something is blocked in one place, an alternative route appears elsewhere," Peskov noted, emphasizing Moscow’s efforts to find ways to minimize the impact of U.S. restrictions.
In World
-
In a tense exchange of words on January 28, Russian President Vladimir Putin made a series of critical statements regarding negotiations with Ukraine, during an interview with Pavel Zarubin, the author of The Moscow Program. Kremlin. Putin.
-
The European Union is moving toward another round of punitive economic measures against Moscow, with a proposal to cut 15 additional Russian banks from the SWIFT international financial messaging system, according to officials familiar with the discussions. The move, part of the bloc’s 16th sanctions package since Russia’s full-scale invasion of Ukraine in February 2022, signals an effort to tighten financial pressure on the Kremlin as the war nears its third anniversary.
-
Armenian Prime Minister Nikol Pashinyan has dismissed speculation about early parliamentary elections, affirming that the next vote will take place as scheduled in June 2026. With Armenia’s parliamentary system granting executive power to the leader of the ruling party, the upcoming elections are seen as crucial not only for the country’s domestic trajectory but also for its relations with Azerbaijan, Russia, and Georgia.
-
President Donald Trump on Monday signed an executive order to develop a robust air defense system aimed at countering growing threats from hypersonic, ballistic, and cruise missiles. The initiative, described in the decree as "Iron Dome for America," draws inspiration from Israel’s missile defense system but envisions broader applications to address threats from nuclear powers and other adversaries.
Leave a review