India Detains Oil Tankers at Sea as Russian Crude Faces Growing Pressure in Asia

The Indian Coast Guard has carried out an offshore operation to detain three oil tankers suspected of involvement in oil smuggling, according to Times of India. Authorities said the operation disrupted the activities of an international oil smuggling network operating in international waters.

Oil Smuggling Operation and Tanker Detentions

According to the newspaper, the criminal group transferred oil at sea, transporting discounted crude from conflict-affected regions while evading customs duties owed to coastal states. After the detention, the tankers were escorted to the port of Mumbai for further inspections. The case will be handed over to law enforcement agencies for a full investigation.

Officials have not disclosed the precise points of origin of the vessels or information about their ownership.

Russian Urals Crude Struggles to Find Buyers

At the same time, analysts at Kpler reported that more than ten tankers carrying Russian Urals crude have become stranded in Asia due to a lack of buyers. As of February 6, five vessels were listed without a confirmed buyer or discharge port. Four of them were anchored off the coasts of Malaysia, China, or Russia's Far East with no destination assigned.

Another six tankers were heading toward Singapore and Malaysia, likely toward a popular crude transshipment zone in the South China Sea. Most of these vessels carry Urals crude, with total volumes estimated at 10 to 12 million barrels. According to Bloomberg, this volume could increase further as uncertainty over deliveries to India continues.

Trade Shifts, Sanctions Pressure, and India's Oil Policy

Imports of Urals crude by independent Chinese refineries have surged, although experts question whether these plants can absorb the entire additional supply. State-owned Chinese refineries continue to avoid Russian oil due to sanctions risks. Against this backdrop, prices for Russian crude delivered to India and China have fallen to record lows.

India sharply reduced purchases of Russian oil in December 2025, with exports to the country dropping to $2.7 billion, down 15 percent year-on-year and 27.1 percent compared to November. In early February, US President Donald Trump announced after a phone call with Indian Prime Minister Narendra Modi that India had abandoned Russian oil imports and that tariffs on Indian goods would be lowered.

Modi confirmed a reduction in tariffs to 18 percent but did not publicly acknowledge any отказ of Russian energy supplies. On February 7, the United States lifted previously imposed 25 percent import duties on Indian goods, citing New Delhi's alleged отказ of Russian oil. Washington also warned that renewed purchases could trigger negative consequences.

Meanwhile, analysts at Moody's Ratings cautioned that abandoning Russian crude would have devastating consequences for India's fast-growing economy. Experts at Kpler also expressed doubts that such a shift could happen quickly, estimating that Russian oil supplies to India are likely to continue at least until March or April 2026.