India resumes buying Russian oil after a two-month break - Reuters

India has resumed imports of Russian Sokol crude oil after a two-month hiatus: at least two refineries have so far taken shipments of light low-sulfur crude in February, Reuters reports, citing four trade sources and ship tracking data, UNN writes.

Details

India's Hindustan Petroleum Corp has bought Sokol oil from a trader, the sources said. HPCL is likely to pay for the oil in UAE dirhams, three of them added.

India's state-owned refineries had to stop purchasing this grade last year after the government advised them not to use Chinese yuan to pay for Russian oil amid tense relations between New Delhi and Beijing, the publication said.

This resulted in more than 10 million barrels of unsold Sokol oil being stranded in offshore storage facilities, one of the biggest disruptions to Russian oil trade since the West imposed sanctions on Moscow over its military actions in Ukraine, the newspaper notes.

India did not receive Sokol oil in December and January, the newspaper writes, citing trade sources and ship tracking data.

The Seagull, carrying about 95,000 tons of Sokol crude oil, reportedly discharged at the port of Mumbai in western India on February 13, according to LSEG ship tracking data.

HPCL has rarely bought Sokol crude before. According to LSEG, it previously purchased this grade for delivery to Mumbai in August.

In February, the privately owned Nayara Energy refinery, a controlling stake in which belongs to Russian companies, including Rosneft, reportedly also received a shipment of Sokol oil, according to data.

LSEG data also shows that three Sokol oil vessels - NS Lion, NS Arctic and Raven - are expected to arrive at the ports of Paradip and Visakhapatnam in the east of the country later this month, the publication writes.

The sources said that Russia will consider selling Sokol oil through trading firms to reduce its excess reserves in the Pacific Ocean. Selling through a trader would help Russia receive steady payments, although it would reduce discounts for the buyer, they said.

Addendum

Sokol oil is exported by Sakhalin-1 LLC, a subsidiary of the Russian oil giant Rosneft, which is also a seller of this grade.

The Indian Oil Corporation, the country's largest refinery, was one of the key buyers of Sokol oil under an annual contract with Rosneft. The company had to stop buying this grade because Sakhalin-1 was unable to open an account with a UAE bank to accept payments in dirhams.

India is ready to give up Russian oil - Reuters10.01.24, 18:18 • 23354 views

Earlier this month, China accepted two shipments of Sokol crude, as shown by LSEG and Kpler data and reported by traders, the publication notes.