The US recently imposed new sanctions targeting Russian energy firms, including Gazprom Neft and Surgutneftegas, along with 183 oil-shipping vessels. The move aims to restrict Russian energy exports and cut Moscow’s financial resources for the war in Ukraine.
Despite these restrictions, Sorokin believes the Russia-India oil trade will continue unaffected. “Energy trade shouldn’t be hindered by politics,” he stated at the India Energy Week.
India’s Oil Imports from Russia
Before the Ukraine war, Russian oil accounted for less than 1% of India’s total imports. However, this surged to 40% in 2022, before slightly declining to 30-35% in recent weeks.
India remains a key buyer of Russian crude due to its discounted rates. However, these discounts have dropped from $7-8 per barrel last year to $2-3 per barrel now.
Sanctions and Alternative Sourcing
Following the US sanctions, some Indian refiners have turned to the Middle East for oil supplies. State-owned banks have also restricted payments for Russian crude, while talks for long-term supply deals with Moscow have slowed.
Nonetheless, Sorokin assured that Russia has the necessary resources and technology to sustain its energy trade. “We will continue to supply the global market despite external pressures,” he said.
Moscow’s Stand on Sanctions
Sorokin criticized the sanctions, stating they have created uncertainty in global energy markets. “Sanctions have made international agreements void and raised the cost of capital, hurting developing economies,” he added.
