US, UK Ramp Up Pressure on India to Stop Russian Oil Imports

Western powers have ramped up pressure on Russia's oil sales amid its war with Ukraine as U.S. President Donald Trump said India would stop buying and Britain imposed sanctions on top Russian oil firms.

Ukrainian President Volodymyr Zelenskiy is schedule to meet Trump in Washington on Friday to push for military and energy support at a time when Kyiv and Moscow are escalating the war with attacks on energy infrastructure.

Indian officials are also in Washington for trade talks, with the U.S. having doubled tariffs on Indian goods and its negotiators saying curbing Russian oil imports would be key to sealing a deal.

Indian refiners are preparing to shift away from Russian oil, with a drop in purchases possible from December, three sources with knowledge of the matter said, though added they had not been formally instructed to stop buying.

India and China are the biggest buyers of Russian crude at discounted prices that Moscow has been forced to offer after losing sales to Europe following its invasion of Ukraine in 2022.

A BIG STEP, CHINA NEXT, TRUMP SAYS

"I was not happy that India was buying oil, and he (Modi)assured me today that they will not be buying oil from Russia," Trump told reporters on Wednesday. "That’s a big step. Now we’re going to get China to do the same thing."

India said the country was discussing deeper energy co-operation with the United States but its foreign ministry said on Thursday that it was not aware of any telephone conversation between Modi and Trump a day earlier.

Oil prices were stable on Thursday as traders said it would take time for India to reduce Russian imports.

Russia accounts for 36% of India's oil imports, or some 1.75 million barrels per day, trade data showed. Imports are set to rise in October as Russia ramped up exports after Ukrainian drones hit its refineries.

UK SANCTIONS ON RUSSIAN, CHINESE ASSETS

Britain on Wednesday imposed sanctions on two top Russian oil firms, Lukoil and Rosneft, the government said, as finance minister Rachel Reeves visited the United States.

It also announced sanctions on Chinese refiner Shandong Yulong Petrochemical and port operators Shandong Jingang Port, Shandong Baogang International and Shandong Haixin Port.

New UK sanctions also target 51 ships, including seven liquefied natural gas tankers, as well as China's Beihai LNG Terminal, which has been importing gas from Russia, and Nayara, a Russian-owned refinery in Mumbai, India.

Nayara, controlled by Russia's Rosneft, has already been sanctioned by the European Union, and is scrambling to sustain operations.

Yulong Petrochemical, a joint venture between private aluminium smelter Nanshan Group and provincial government-backed Shandong Energy Group, is China's newest refiner. It has a processing capacity of 400,000 barrels per day and is a top buyer of Russian oil, according to traders.

Nayara, Yulong Petrochemical, Rosneft and Lukoil did not respond to requests for comment.

China's foreign ministry said on Thursday that it opposes unilateral sanctions without a basis in international law or authorisation by the U.N. Security Council, is deeply dissatisfied with Britain's move and has lodged a stern protest.

RUSSIA STILL CONFIDENT

Russia's embassy in London said the sanctions would destabilise markets, push up costs for British consumers and will have no impact on Russian foreign policy.

Since Trump's summit with Russian President Vladimir Putin in August failed to yield a breakthrough over the war in Ukraine, Kyiv has been hammering Russian oil refineries with drones while Russian strikes have caused major power outages across Ukraine.

Putin, speaking at a energy conference, said Russia's oil output would drop only slightly this year. Deputy Prime Minister Alexander Novak said Russian and Indian cooperation would continue.

Russia continues to be top oil supplier to India https://reut.rs/3KKsj5L

(Reuters)