One of India's largest state-owned banks joins sanctions against Russian oil
Some Indian refineries have used this bank to buy Russian raw materials through the UAE
Since April, the second largest Indian state-owned bank by assets, Bank of Baroda, has been blocking payments for oil from Russia if its price exceeds the ceiling set by the G7 countries.
Source. Reuters reports this with reference to three sources familiar with the situation.
According to them, some Indian refineries have used this bank to buy Russian raw materials through the United Arab Emirates with payment in dirhams.
A number of deals were made at prices above $60, sources say, but now this practice will be put to an end.
"Bank of Baroda is very careful with payments above the price ceiling. They told us that they will not make payments," says one of the agency's interlocutors.
According to the Russian Ministry of Finance, in March, the main export grade of Russian oil producers, Urals, averaged $47.8 for export. This price, however, does not take into account transportation costs.
It is unclear how much Indian customers actually pay for oil. According to Argus, the average quotation in the northwestern ports of India in March amounted to $61.7 per barrel, and in February exceeded $66. Goldman Sachs analysts, based on Indian customs statistics, estimated this level to be even higher – around $70.
Having increased its purchases from Russia almost 400 times, India remains the absolute leader in imports of Urals sea cargoes: in March, it accounted for 70% of the monthly shipment plan.
China, according to Reuters, buys much less – about 8%. Turkey is in third place with a 7% share. The fourth largest buyer with a 5% share is Bulgaria, the only European country allowed to buy Russian marine oil after the EU embargo.
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