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US sanctions force vessels with Russian oil to divert from India, sources say

Published by Global Banking & Finance Review

Posted on August 1, 2025

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· Last updated: January 22, 2026

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US sanctions force vessels with Russian oil to divert from India, sources say
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By Nidhi Verma and Gleb Stolyarov NEW DELHI/MOSCOW (Reuters) -At least two vessels loaded with Russian oil bound for refiners in India have diverted to other destinations following new U.S. sanctions,

US Sanctions Cause Russian Oil Vessels to Change Course from India

Impact of US Sanctions on Oil Supply

By Nidhi Verma and Gleb Stolyarov

Affected Vessels and Destinations

NEW DELHI/MOSCOW (Reuters) -At least two vessels loaded with Russian oil bound for refiners in India have diverted to other destinations following new U.S. sanctions, trade sources said, and LSEG trade flows showed.

Responses from Indian Companies

The U.S. Treasury Department this week imposed sanctions on more than 115 Iran-linked individuals, entities, and ships, some of which are involved in transporting Russian oil.

Broader Implications for Oil Trade

U.S. President Donald Trump has urged countries to halt purchases of oil from Moscow, threatening 100% tariffs unless Russia agrees to a significant peace deal with Ukraine.

Three ships - the Aframaxes Tagor and Guanyin and the Suezmax Tassos - were scheduled to deliver Russian oil to Indian ports this month, trade sources said. All three vessels are under U.S. sanctions.

Tagor was bound for Chennai on India's east coast, while Guanyin and Tassos were headed to ports in western India, according to trade sources and Russian ports data.

Tighter Western sanctions aimed at cutting Russia's oil revenue, seen as funding its war against Ukraine, have been increasingly hitting Russian oil supplies for India, which buys more than a third of its oil needs from Russia.

Tagor is now heading to Dalian in China, while Tassos is diverting to Port Said in Egypt, the data shows.

Guanyin remains on course to Sikka, a port used by Reliance Industries and Bharat Petroleum Corp Ltd..

Indian Oil Corp, which was to receive the Tagor shipment, and BPCL did not respond to Reuters' emailed requests for comment.

Zulu Shipping, linked to Panama-flagged Tassos and Tagor, and Guanyin-owner Silver Tetra Marine could not be reached for comments. Both companies are under U.S. sanctions.

A Reliance spokesperson said that "neither of these two vessels, Guanyin and Tassos, is coming to us".

Reliance has previously purchased oil in Guanyin.

Separately, two other vessels, Achilles and Elyte, loaded with Russian oil, are preparing to discharge Russian Urals for Reliance, according to LSEG data. Both these vessels are sanctioned by Britain and the European Union. India has condemned the EU sanctions.

(Additional Reporting by Chen Aizhu in Singapore, Editing by Louise Heavens)

Key Takeaways

  • US sanctions cause Russian oil vessels to divert from India.
  • Three vessels under US sanctions change destinations.
  • India's oil supply from Russia faces disruptions.
  • Western sanctions aim to cut Russia's oil revenue.
  • Reliance and BPCL respond to changes in oil shipments.

Frequently Asked Questions

What recent actions have affected Russian oil shipments to India?
New U.S. sanctions have forced at least two vessels loaded with Russian oil to divert from their intended destinations in India.
Which vessels were scheduled to deliver Russian oil to India?
The vessels Tagor, Guanyin, and Tassos were scheduled to deliver Russian oil to Indian ports this month.
What are the new destinations for the diverted vessels?
Tagor is now heading to Dalian in China, while Tassos is diverting to Port Said in Egypt.
How have Indian oil companies responded to the sanctions?
Indian Oil Corp and BPCL did not respond to requests for comment regarding the impacted shipments.
What is the significance of the sanctions on Russian oil?
The sanctions aim to cut Russia's oil revenue, which is seen as funding its war against Ukraine, thereby impacting oil supplies for India.

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