Russian Oil cargo coming from Russia to India changed its route due to payment-related issues, China became active

Many ships carrying crude oil from Russia, which were heading towards India, are now changing their route and heading towards the east. This claim has been made in a Bloomberg report. There has been a big decline in the quantity of crude oil coming from Russia to India in recent times amid concerns related to oil payments to Moscow.

According to ship-tracking data, five ships carrying Sokol oil from Russia's Far East – NS Commander, Sakhalin Island, Krymsk, Nellis and Liteiny Prospect – are heading towards the Strait of Malacca at speeds of 7 to 10 knots. A sixth Sokol ship, known as NS Century, is still near Sri Lanka.

According to Victor Katona, lead crude analyst at data intelligence provider Kpler, China appears to have expressed interest in the Sokol cargo. In such a situation, speculations are being made that this cargo may go towards China. India's oil imports from Russia, a key outlet for Russia, fell in December to the lowest since January 2023 amid the war with Ukraine. Not a single Sokol cargo reached India during this period due to payments related to local refiners.

India's imports increased after American and European countries banned Russian oil. The US and its allies have imposed sanctions on entities that violate the $60 per barrel limit on Russian crude exports, which came into effect at the end of 2022. Last month, a senior US Treasury official said enforcement of these sanctions would be expedited.

The NS Century ship - which carries about 700,000 barrels - was embargoed by the US Treasury last year. Four of the other ships carry the same amount of oil, while the fifth ship, Nellis, carries double the amount. Most of these vessels are owned by Sovcomflot PJSC, Russia's state-backed shipping company.