Adani Group bars vessels facing sanctions from US, UK and EU

AHMEDABAD : The Adani Group has reportedly barred ships facing sanctions from the European Union, United States and the United Kingdom from docking at any of its ports, to safeguard its interests, according to an order reviewed by Reuters.

“To safeguard the legal and commercial interests of the Port, we hereby emphasize that sanctioned vessels are not accepted,” the order said, adding that the vessel’s agent shall be required to provide a written undertaking that the vessel is not subject to sanctions.

The decision to block sanctioned vessels comes at a time when global shipping is under close scrutiny due to heightened tensions, primarily driven by US-imposed tariffs over Russian crude oil sales, as well as the Russia-Ukraine war.

India has been a major buyer of discounted Russian crude oil, much of which is shipped via tankers sanctioned by the EU, US, and UK. Hindustan Petroleum Corporation Limited (HPCL)-Mittal Energy’s Bathinda refinery receives all its crude at Adani’s Mundra Port, which is also used by Indian Oil Corp (IOC) for its imports across multiple refineries. Both companies regularly receive Russian oil at Mundra, according to Reuters.

In view of Adani Ports’ move, IOC is planning to source Russian oil from other ports that still accept EU and UK-sanctioned vessels, the report said, citing a source.

Tariffs on Russian oil

These oil imports have led to the US imposing a punitive 25 per cent tariff on Indian goods over and above a 25 per cent reciprocal tariff. Washington has alleged that India has been profiteering from the cheap oil, and its continuous purchase is helping Russia to fuel its war in Ukraine.

India has repeatedly rejected such allegations, maintaining that its oil purchases are aimed at securing the country’s energy needs. Despite the steep tariffs, Russian oil imports to India have largely held steady — even rising in early September. In the first nine days of the month, crude oil loadings from Russia bound for India averaged 1.55 million barrels per day (bpd), up from 1.49 million bpd in August, according to data from Kpler, a global shipping analytics provider.

However, the Adani group’s latest move could pose a challenge to such imports. Adani Ports is India’s largest port operator that owns and manages a network of ports across the country’s coastline, with its newest project being the Vizhinjam Port in Kerala, developed as a public–private partnership with the state government. The group also operates overseas facilities, including the Haifa Port in Israel, Colombo Port in Sri Lanka, Dar es Salaam Port in Tanzania, and the North Queensland Export Terminal in Australia.