US sanctions force vessels with Russian oil to divert from India

FE Team | Published: August 01, 2025 22:48:09

NEW DELHI/MOSCOW, Aug 1 (Reuters): At least two vessels loaded with Russian oil bound for refiners in India have diverted to other destinations following new U.S. sanctions, trade sources said, and LSEG trade flows showed.
The U.S. Treasury Department this week imposed sanctions on more than 115 Iran-linked individuals, entities, and ships, some of which are involved in transporting Russian oil.
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
U.S. President Donald Trump has urged countries to halt purchases of oil from Moscow, threatening 100% tariffs unless Russia agrees to a significant peace deal with Ukraine.
Three ships - the Aframaxes Tagor and Guanyin and the Suezmax Tassos - were scheduled to deliver Russian oil to Indian ports this month, trade sources said. All three vessels are under U.S. sanctions.
Tagor was bound for Chennai on India's east coast, while Guanyin and Tassos were headed to ports in western India, according to trade sources and Russian ports data.
Tighter Western sanctions aimed at cutting Russia's oil revenue, seen as funding its war against Ukraine, have been increasingly hitting Russian oil supplies for India, which buys more than a third of its oil needs from Russia.
Tagor is now heading to Dalian in China, while Tassos is diverting to Port Said in Egypt, the data shows.
Indian Oil Corp (IOC.NS), opens new tab, which was to receive the Tagor shipment, and BPCL did not respond to Reuters' emailed requests for comment.
Zulu Shipping, linked to Panama-flagged Tassos and Tagor, and Guanyin-owner Silver Tetra Marine could not be reached for comments. Both companies are under U.S. sanctions.
A Reliance spokesperson said that "neither of these two vessels, Guanyin and Tassos, is coming to us".
Reliance has previously purchased oil in Guanyin.
Separately, two other vessels, Achilles and Elyte, loaded with Russian oil, are preparing to discharge Russian Urals for Reliance, according to LSEG data. Both these vessels are sanctioned by Britain and the European Union. India has condemned the EU sanctions.