**Indian Banks Block Russian Oil Payments**
India’s banks have started blocking payments for Russian oil imports. This is due to the latest US sanctions against Russia’s oil industry.
The US government imposed these sanctions on January 10. They targeted major Russian oil companies and almost 200 vessels that were not supposed to be transporting oil.
Indian state-owned banks, like State Bank of India and Punjab National Bank, are being very careful about following US rules. Private banks, however, are taking a more relaxed approach.
India became the world’s biggest importer of Russian oil after Russia invaded Ukraine in February 2022. Most of these imports came from two big Russian oil companies: Surgutneftegas and Gazprom Neft.
These companies have been targeted by US sanctions. As a result, about 20% of all Russian oil exports to India are now affected. Before the sanctions were imposed, Russia was sending around 450,000 barrels of crude oil per day to India.
Some Russian tankers that had already been booked before the sanctions took effect will still be allowed to unload their cargo in Indian ports until March 12. This is because the US government has given them a bit more time to finish any outstanding transactions.
Indian refineries are now looking for alternative sources of oil, such as Oman and the United Arab Emirates.
