Russia seeks to circumvent US sanctions to maintain oil supplies to India
Russia is already working to circumvent the latest US sanctions to enable India to continue importing large volumes of Russian oil. This was reported by The Guardian with reference to sources familiar with the situation.
According to the publication, Moscow is adapting its export schemes by changing legal suppliers of raw materials.
How the sanctions circumvention scheme works
The key mechanism is that oil for Indian refineries is supplied by companies that are not formally under US sanctions.
In particular, if the supplier is not «Rosneft» or «Lukoil», The Indian refinery is not subject to direct US restrictions, which allows it to continue purchases without the risk of sanctions pressure from Washington.
Why India is critically important to Russia
India has become one of the key markets for Russian oil after Russia's full-scale invasion of Ukraine and the imposition of Western sanctions. Discounted Russian oil allowed New Delhi to significantly reduce its energy import costs.
For Moscow, preserving this export is critical to filling the budget and financing the war.
The context of sanctions
The latest US sanctions are aimed at limiting Russia's energy export revenues and complicating its financial and logistics chains. At the same time, the West recognises that Moscow is systematically seeking ways to adapt, using the «grey» zone of sanctions legislation.
Analysts note that such schemes could lead to increased secondary sanctions and pressure on third countries, including India.
What's next
If large-scale circumvention of restrictions is detected, the US may expand the sanctions list or change its approach to regulating operations with Russian oil. This could affect both the global oil market and Washington's relations with New Delhi.
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