and head toward China, Kpler analyst Katona said. A few points to note, the ships have been idling off Indian coast awaiting payment. India don't want to pay in RMB, which the Russian prefers, but Russian accept dirhams, they just don't want rupee. However Russian company Sokol failed to open account in UAE. China buyer said to have agree to take over the crude. Indian official claimed it's not a payment issue, just that Russian didn't offer them a good price, LOL. If Indian rejected outright, why would the Russian ships idling off Indian coast? In another news Indian oil import from Russia cratered in Dec 2023, ie. they received zero barrel of Russan oil. Either Indian really weren't offered a good deal, or they couldn't make the payment.Russian oil exports in India cratered in December, with Indian refiners receiving no Sokol crude that month at all, according to Kpler data cited by Bloomberg.
By Rakesh Sharma
January 1, 2024 at 3:34 PM GMT+8
A number of vessels hauling crude from Russia that had been idling off India are now headed away from the country eastwards, amid concerns over oil payments to Moscow that spurred a slump in arrivals last month.
Five ships all carrying Sokol oil from Russia’s Far East — the NS Commander, Sakhalin Island, Krymsk, Nellis, and Liteyny Prospect — are moving toward the Malacca Strait at 7 to 10 knots, according to vessel-tracking data. A sixth also holding Sokol — the NS Century — is still close to Sri Lanka.
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Bloomberg article is behind paywall, the following are Business Insider article quoting Bloomberg.
Russian oil ships drifting near India's shores have begun to turn away amid unresolved payment disputes between the two countries.
According to ship-tracking data compiled by Bloomberg, five oil tankers carrying Sokol oil, which have been idling close to India and Sri Lanka for about a month, are now headed eastward toward the Malacca Straight.
Another Russian ship — the NS Century — is still drifting near the shores of Sri Lanka. The tanker has been idling for over a month as Indian officials mull over whether to let the ship unload its cargo, Bloomberg previously reported.
The turnaround comes as Indian refiners are paying for oil with Russia in dirhams, the currency of the United Arab Emirates, people familiar with the matter told Reuters last week. But a unit of Rosneft, one of Russia's state-run oil giants, hasn't been able to open a bank account in the UAE, meaning it's unable to accept payment, sources added.
As of October, India had at least seven oil shipments from Russia that hadn't been paid, Reuters originally reported.
India is also under pressure to remain on good terms with the US, which sanctioned the NS Century late in 2023 for trading oil with Russia above the $60 per barrel price cap. Those restrictions are part of the West's attempt to ramp up pressure on Russia's energy revenue that it is using to fund its war against Ukraine.
India has become one of Russia's largest oil customers since the invasion of Ukraine began in 2022. Russia now exports nearly all of its oil to China and India, Russia's deputy prime minister said last week – though shipments to India have recently stalled on payment issues. Russian oil exports in India cratered in December, with Indian refiners receiving no Sokol crude that month at all, according to Kpler data cited by Bloomberg.
