India’s third-largest bank, Bank of Baroda, has stopped making regular payments for Russian oil purchased above the “ceiling” of $60 a barrel. Bank officials fear secondary sanctions, Reuters reports .
That payments above the “ceiling” will not be accepted, the bank told refineries in March.
They (the bank) refused to make payments for raw materials purchased at prices above the marginal price, one of the interlocutors told the agency.
Another interlocutor added that the bank is “extremely careful when paying for Russian oil purchased for more than 60 dollars a barrel.
According to the agency, Indian refiners paid for Russian oil in UAE dirhams, buying it above the established cap. This method of payment in a currency strictly pegged to the dollar allowed them to buy raw materials at a higher price and to hide the fact of violating the sanctions. Transactions went through the Bank of Baroda to traders in Dubai.
At the same time, it is expected that due to OPEC+’s decision to cut oil production , prices of Russian low-sulphur raw materials such as Sokol and ESPO Blend may rise above the price ceiling due to a sharp rise in price indicators.
“We have not stopped or reduced our purchases of Russian oil since the Bank of Baroda decision. <…> We will consider using Rs. to pay for oil purchased at prices above the ceiling price", concluded one of the interlocutors of Reuters.Earlier it was reported that the agreed move by Russia and Saudi Arabia to further cut production is symptomatic of a return to the tactics first used by Saudi Energy Minister Prince Abdulaziz bin Salman, in 2020. Then he said he wanted to, swore that “anyone who plays in this market is going to itch like hell”.
