Western banks refuse to make payments related to the supply of Russian oil to India
Both countries are already looking for possible workarounds
India's state-owned oil refinery Hindustan Petroleum has encountered problems when trying to pay for Russian oil due to the price ceiling.
Source. This was reported by Bloomberg with reference to a top manager of the company.
Western banks refused to make the payment because Hindustan Petroleum did not disclose the value of the deal. In this regard, banks fear a violation of sanctions against the Russian oil industry.
In early December, the price ceiling for Russian oil, which was agreed upon by the G7 countries and the European Union, came into effect. Western banks, as well as insurance and logistics companies, were banned from providing services to companies around the world that would buy oil from Russia at a price higher than $60.
Hindustan Petroleum used to pay for Russian oil in US dollars, UAE dirhams and rubles, the source said.
According to him, payment problems are unlikely to affect fuel flows between India and Russia. The countries are already looking for possible workarounds, he said, but did not provide details.
By the end of the fiscal year (March 31, 2023), Hindustan Petroleum will process 15 million tons of imported oil, analysts predict. About 2 million of them were purchased by the refinery on the spot market in Russia.
Last year, India and China became the main buyers of Russian oil. Crude oil exports from Russia to these Asian countries rose to a record 3.19 million barrels per day over the past month.
Background. Earlier it became known that India refused to buy Russian diesel fuel.
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