Putin's oil business: India turns away - big losses threaten!

Russia is trying to expand its oil business despite existing sanctions in order to finance the war in Ukraine. However, its trading partners are increasingly moving away from Russian oil, which is putting a severe strain on the country's economic situation. India, one of the biggest buyers of Russian oil since the invasion of Ukraine in 2022, has recently shown signs that it may change its oil sourcing strategy. The monthly oil trade between India and Russia was almost three billion dollars, which is about 1.85 to 1.95 million barrels per day, as Mercury reported.

However, US sanctions hitting major Russian oil companies and ships are worrying Indian financial institutions, which are blocking payments for Russian crude. In particular, state-owned banks such as the State Bank of India and the Punjab National Bank are acting cautiously due to concerns about possible secondary sanctions. On January 10, 2025, about 180 ships and dozens of oil traders and service providers were sanctioned, in what is considered the most serious measures against the Russian energy sector and could potentially cost Russia billions of dollars a month.

India is looking for alternatives

Indian refiners have decided to stop accepting Russian oil from sanctioned tankers, according to reports. To reduce dependence, India is looking for alternatives and has already reached agreements with Oman and the United Arab Emirates. It is estimated that around 20 percent of Russian oil exports to India come from sanctioned companies. India has also announced that it will no longer buy LNG from the Arctic LNG-2 project, which is also under Western sanctions.

Compounding the situation is the possibility that India may buy more oil from the US, increasing pressure on Vladimir Putin. Loud fr.de US oil shipments to India have been rising steadily since March, while Russian oil imports are declining. U.S. sanctions and the $60 price cap on Russian oil are forcing Russia to sell below market price, limiting the country's ability to make a profit.

Additionally, Ukrainian drone attacks on Russian oil processing warehouses have also threatened production in Russia. These attacks could prove to be a serious threat to the Russian economy as they could severely impact oil production.