Asia and Middle East curb Russian crude imports after sanctions

Major buyers of Russian crude in Asia and the Middle East have begun cutting purchases and seeking alternative supplies after Washington in late October imposed sanctions on Russia's two largest oil producers, prompting a sharp drop in seaborne flows and a build-up of cargoes at sea. State and private refiners in China, India and Turkey have either paused purchases of cargoes linked to the sanctioned producers or moved to non-Russian grades for December and January deliveries, industry sources and official statements show.

The U.S. measures, announced Oct. 22–23, target Rosneft and Lukoil and extend to a range of subsidiaries, increasing the risk that institutions and traders handling sanctioned shipments could face secondary penalties. The restrictions have prompted immediate commercial moves. Several large Indian processors that previously accounted for roughly half of the country’s Russian crude imports paused new deals, while at least one major Indian refiner bought December cargoes from sellers not subject to sanctions to preserve supply. India’s foreign ministry said officials were studying the implications, adding that New Delhi will act based on evolving market dynamics...