According to President Joe Biden's energy envoy on Tuesday, the US is attempting to assist India in negotiating cheaper rates for Russian oil as it tightens penalties on ships transporting the fuel beyond Western pricing ceilings.
The main Russian tanker firm, Sovcomflot, was subject to penalties by Washington towards the end of last month, marking two years since Moscow's full-scale invasion of Ukraine. Additionally, it listed 14 crude oil tankers as belonging to Sovcomflot.
According to Reuters late last month, this raised concerns in India about possible damage to Russian oil sales to the country, which is the largest importer of Russian seaborne crude, and how the new sanctions would make it more difficult for Indian state refiners to negotiate yearly supply agreements.
By pressuring the tankers to travel in a different direction, I'm attempting to persuade the Indians to agree to better terms. "I believe the Indians comprehend our intentions," Hochstein remarked.
One of the biggest energy producers in the world, Russia, is now forced to transport its oil to new clients in China and India as a result of Western sanctions.
Numerous tankers carrying Russian oil have been forced to change their flags from Liberia and the Marshall Islands, which have registries based in Virginia, to flags from other nations, including Gabon, as a result of the sanctions and the $60 per barrel price cap imposed on cargoes of Russian oil that use Western-based maritime services like insurance, transportation, and flagging.