India has resumed imports of Russian Sokol oil following a two-month hiatus, as reported by multiple trade sources and ship tracking data.

The resumption of imports comes after Indian state refiners halted purchases of Sokol oil last year due to government advisories against using Chinese yuan for payments, amid strained relations between India and China.

During the suspension, over 10 million barrels of Sokol oil remained unsold, accumulating in seaborne storages, causing disruptions in Russian oil trade.

Hindustan Petroleum Corp (HPCL), one of the Indian refiners, has purchased Sokol oil from a trader, intending to make payments in UAE dirhams, according to sources.

The vessel Seagull, carrying approximately 95,000 metric tons of Sokol oil, discharged at India’s western Mumbai port on Feb. 13, as indicated by ship tracking data.

Private refiner Nayara Energy, majority-owned by Russian entities including oil major Rosneft, also took delivery of Sokol oil in February.

Further ship tracking data reveals that three vessels carrying Sokol oil – NS Lion, NS Antarctic, and Raven – are expected to arrive at the eastern ports of Paradip and Visakhapatnam later this month.

Russia intends to sell Sokol oil through trading firms to reduce surplus floating stocks in the Pacific, seeking steady payments despite potential reductions in buyer discounts.Indian Oil Corp (IOC), a major Indian refiner, previously bought Sokol oil under an annual contract with Rosneft but had to stop due to logistical challenges.

Rosneft’s subsidiary, Sakhalin-1 LLC, faced difficulties in opening a bank account in the UAE to accept dirham payments.

Earlier this month, China also resumed purchases of Sokol oil, indicating sustained demand from key Asian markets.

Main image: By Russian.dissident – Own work, Public Domain, https://commons.wikimedia.org/w/index.php?curid=12376249

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