Indian Tanker Seizures Threaten Market Shift and Rift With Iran
The Indian seizure of three dark fleet tankers associated with Iranian oil exports has been well-known within the industry for days, even though the Indian Coast Guard quickly withdrew a post describing their seizure. But now Reuters has confirmed that the seizures did indeed take place, and that the tankers are being held off the western Indian coast by the Indian Coast Guard.
On February 5, the ICG boarded three Iran-associated sanctions-busting tankers about 100 nautical miles to the west of Mumbai. The tankers were then escorted to anchorages off Mumbai, their current locations being confirmed by multiple AIS aggregating sites. The tankers concerned are the Al Jafzia (IMO 9171498), Asphalt Star (IMO 9463528) and the Iranian-flagged Stellar Ruby (IMO 9555199), all of which are US-sanctioned following multiple journeys in which Iranian oil has been loaded, transshipped and delivered.
Iran has issued a statement denying any connection to the tankers or their cargoes.
At the time of the seizure, the Maritime Executive noted that this Indian action may have been connected with the advertised participation of Iran’s 103rd Naval Flotilla in the International Fleet review, which India is about to host in Visakhapatnam, the headquarters of the Indian navy’s Eastern Command. It was suggested that the Indian move was a subtle way of suggesting to the Iranians that their invitation had been rescinded, and that they were no longer welcome, particularly as the Indian government intend to use the occasion of the fleet review to advertise the impending purchase of more Boeing Poseidon P-8I aircraft, a deal which could have been jeopardized by any Iranian presence. Now however, as the Indian Navy announces the arrival of foreign ships for the fleet review, Iranian participation is no longer being trumpeted.
Iran is still expected to participate - however, not with the announced three ships of the 103rd Flotilla, but likely with a single Moudge-class frigate IRINS Dena (F75) instead.
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Of more significance than the Iranian participation in the International Fleet Review, the Indian Coast Guard’s seizures will be of much greater potential impact on international oil flows. India has been importing large volumes of sanctioned oil for domestic use, both from Iran and Russia. But it has also been refining significant volumes of crude from these sources, and then re-exporting it to countries such as Australia, labeled as Indian rather than sanctioned oil. If the Indian Coast Guard seizures are maintained, then Indian refiners will need to switch the source of their feedstock – and what they will be able to purchase instead will not enjoy the discounts which could be asked for sanctioned oil.
Top image courtesy VesselFinder