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Sources say that US sanctions on Russian oil force ships to divert away from India

Trade sources and LSEG data show that at least two ships loaded with Russian crude oil bound for refiners located in India were diverted due to new U.S. Sanctions.

This week, the U.S. Treasury Department imposed sanctions against more than 115 Iran linked individuals, entities and ships. Some of these vessels are involved in transporting Russian crude oil.

Donald Trump, the U.S. president, has warned that he will impose 100% tariffs on all oil purchases from Moscow unless Russia signs a peace agreement with Ukraine.

Trade sources reported that three ships, the Aframaxes Tagor, Guanyin, and Suezmax Tassos were to deliver Russian oil into Indian ports in this month. The U.S. has imposed sanctions on all three ships.

According to Russian port data and trade sources, Tagor and Guanyin were bound for ports on the west coast of India.

India's Russian oil supply has been hit by the tighter sanctions from the West, which are aimed at cutting Russia’s oil revenues, as they believe that this money is being used to fund its war in Ukraine. India buys over a third its oil requirements from Russia.

Data shows that Tagor has now diverted to Dalian, China, and Tassos to Port Said, Egypt.

Guanyin continues to head towards Sikka, which is a port that Reliance Industries Ltd. and Bharat Oil Corp Ltd. use.

Indian Oil Corp., which was supposed to receive the Tagor shipment and BPCL have not responded to emailed requests for comments.

Silver Tetra Marine, owner of Guanyin and Zulu Shipping (linked to Panama flagged Tassos Tagor) and Silver Tetra Marine, owner of Guanyin, could not be reached for comment. Both companies are subject to U.S. sanctions.

Reliance's spokesperson stated that "neither vessel, Guanyin or Tassos will be coming to us".

Reliance had previously purchased oil from Guanyin.

According to LSEG, two other vessels, Achilles, and Elyte are preparing to unload Russian Urals to Reliance. These two vessels have been sanctioned both by Britain and the European Union. India has condemned EU sanctions.

(source: Reuters)