(Indian High Commission photo)
-as US sanctions bite
Two massive supertankers have begun a lengthy voyage from Guyana to India, hauling a total of 4 million barrels of crude oil over approximately 11,000 miles (17,700 kilometers).
This journey results from the major shift by Indian refiners to secure non-Russian energy supplies following stepped-up US sanctions on countries taking cheap oil from Moscow, Bloomberg reported yesterday. The Very Large Crude Carriers (VLCCs) Cobalt Nova and Olympic Lion departed Guyana in late November and are scheduled to arrive in India in January. These are the first crude shipments from Guyana to India since 2021.
The primary catalyst for this trade pivot is the recent wave of US sanctions targeting Russia’s two largest oil exporters, Rosneft PJSC and Lukoil PJSC. India, which had been importing around 1.7 million barrels a day of Russian oil, now faces significant compliance risks if it continues the trade, a situation compounded by US President Donald Trump’s decision in August to double tariffs on all Indian imports to 50%. Most Indian refiners are reportedly skipping Russian crude purchases for December loadings, according to Bloomberg and Reuters with India’s total Russian oil imports expected to plunge to a three-year low. This volatility has prompted Indian refiners, despite their sophisticated processing capabilities, to seek alternatives to manage their supply needs.
