India’s Biggest Private Port Operator Blocks Sanctioned Ships From Entering Its Ports

Adani Group, India’s biggest private port operator, has stopped allowing entry of ships that are sanctioned by Western nations at all of its ports, according to multiple sources and official documents. The move is likely to impact Russian oil supplies to Indian refiners using Adani’s facilities.

The orders, issued by Adani Ports and Logistics, make it clear that vessels under sanctions from the European Union, the United States, or the United Kingdom will not be accepted.

The notices said such ships will be denied entry, berthing, or access to any port services. Agents of vessels are also required to provide a written undertaking at the time of nomination confirming that the ship is not under sanctions.

India has emerged as the largest buyer of Russian seaborne oil, most of which is carried by tankers facing Western sanctions. Russia relies heavily on a so-called shadow fleet of ships that operate outside mainstream trade channels to keep its oil revenues flowing.

Adani’s decision could disrupt crude imports for HPCL-Mittal Energy Ltd (HMEL) and Indian Oil Corporation (IOC). HMEL operates a 226,000-barrels-per-day refinery in Bathinda, Punjab, and brings in all of its crude oil through Adani’s Mundra Port in Gujarat. IOC, the country’s largest refiner, also uses Mundra as one of the entry points for crude supplies to its 10 refineries across India.

Data from industry sources and LSEG trade flows shows that both HMEL and IOC regularly receive Russian oil shipments at Mundra. While neither company responded immediately, a source familiar with IOC’s procurement said the refiner would now try to divert Russian oil cargoes to other Indian ports that still permit vessels under EU or UK sanctions.

India officially follows only United Nations sanctions, and not unilateral restrictions imposed by individual countries. However, Adani’s decision appears aimed at protecting what the company described as the “legal and commercial interests of the Port.”

The group operates 14 ports across India, and sources said similar orders have been circulated for all facilities.

Reference: Reuters

Source: Maritime Shipping News