Media reports New Delhi striking out oil tanker production plan

(MENAFN) India is exploring the possibility of domestic oil tanker production to reduce the risks associated with Western sanctions on Russia’s energy sector, according to BusinessLine. The Indian government is planning to support manufacturers through Special Purpose Vehicles (SPVs), which will be formed with the involvement of the state-owned Shipping Corporation of India (SCI), oil marketing companies, dockyards, and financial institutions.

A survey by India’s oil ministry last year identified the need for an additional 100 tankers, ranging from smaller vessels to ultra-large crude carriers. This initiative aims to strengthen India’s oil infrastructure and reduce its $100 billion oil import bill.

Over the past two years, India has become Russia’s second-largest oil buyer, importing crude worth 49 billion euros in 2024. Western sanctions targeting Russian oil exports and shipping have affected India, which relies on maritime routes for energy imports. However, Indian officials have indicated that there will be no disruption to Russian oil imports until March when new sanctions are expected to come into effect.

The Indian Oil Corporation (IOC) is reportedly purchasing “clean” Russian crude oil that complies with U.S. sanctions. Meanwhile, Russia remains committed to continuing its oil exports, with Deputy Energy Minister Pavel Sorokin reaffirming Moscow’s intent to strengthen energy ties with key partners like India despite sanctions.

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