New Delhi (Brussels Morning Newspaper) – Ship tracking data revealed that a vessel subject to European Union sanctions is unloading Russian naphtha at a port in western India operated by the Adani group, on Tuesday, Reuters reported.
The European Union, the United Kingdom, and the United States have imposed a series of sanctions on Russian entities to constrain Russia’s revenue in supporting its war in Ukraine.
This is the first allowed tanker to arrive at the Mundra port since Adani Group, India’s largest private port operator and headed by Indian billionaire Gautam Adani, prohibited all tankers that are sanctioned by Western countries. This prohibition went into place on September 11.
How is India navigating Western sanctions on Russian oil?
According to a report from Reuters, the medium-range tanker Prometei is discharging its cargo for HPCL-Mittal Energy at Mundra port. The cargo consists of roughly 30,000 metric tons of Russian naphtha, as confirmed by two industry sources and shipping data from Kpler and LSEG.
The cargo was loaded at the Russian Baltic port of Ust-Luga on September 22 and was headed to Mundra, according to Kpler data. Naphtha can be used to produce petrochemicals and for blending gasoline.
How much Russian naphtha is India currently importing?
India has emerged as a significant buyer of Russian naphtha since the war began, with Kpler data indicating that it imported around 54,000 barrels per day in the year to date.
In October, Russian port naphtha loadings to India amounted to around 185,000 tons, most still at sea, according to LSEG data, which was an increase from the approximately 170,000 tons recorded in September.
According to two sources familiar with the situation, last month, Adani stopped a vessel carrying refined fuels chartered by Nayara Energy, a refiner sanctioned by the EU and the UK, from entering its Mundra port.
The MR-sized tanker Rose Makis, which has not been sanctioned, was carrying fuel destined for state-owned Hindustan Petroleum Corp, which has begun increasing purchases from Nayara. The sources said the Rose Makis was diverted to the port in Mumbai after Adani did not let it enter, and supporting LSEG data showed this.
How are EU sanctions affecting Russia’s oil export routes?
The European Union has enacted sweeping sanctions against the Russian fleet transporting oil, as part of a wider effort to sever revenue sources for Russia to fund the war in Ukraine.
The EU sanctioned more than 550 vessels, referred to as Russia’s “shadow fleet,” that transport Russian oil shipments. These vessels are banned from entering EU ports and prohibited from receiving services in the EU, limiting their ability to operate.
