Turkey’s Tupras to Halt Purchases of Russian Oil Above G7 Price Cap, India Expands LNG Deals

Turkey’s largest refiner, Turkiye Petrol Rafinerileri (Tupras), will stop purchasing oil and products from Russia that do not comply with the G7 price cap starting February 27, as part of efforts to adhere to U.S. sanctions on Russian oil. This move makes Tupras the latest to align with Western sanctions, following other major global buyers like China and India, which are also navigating the restrictions imposed on Russian energy exports.

The U.S. sanctions, imposed on January 10, target key Russian oil companies, vessels, oilfield service providers, and energy officials. The price cap mechanism, which was introduced by the G7 and EU, stipulates that Russian crude shipments to third countries can use Western insurance and financing only if sold at or below the $60-per-barrel ceiling. This mechanism is designed to curb Russia’s revenue from oil exports while ensuring global supply continuity.

While India and China remain the largest buyers of Russian oil, both countries are navigating the sanctions by continuing to purchase Russian oil as long as it adheres to the price cap. India, in particular, is restructuring its oil trade relationships, ensuring no involvement with sanctioned entities. This strategy allows India to continue importing Russian crude without violating U.S. sanctions.

In related news, the UAE’s ADNOC Gas has signed a significant long-term agreement with India. Under this deal, ADNOC Gas will supply liquefied natural gas (LNG) to Indian Oil Corporation for up to 14 years, worth between $7 billion and $9 billion. This agreement is part of ADNOC’s broader strategy to expand its global customer base and meet India’s growing energy demand.

India's natural gas consumption is expected to rise significantly as its economy grows and industrial demand expands. With natural gas set to play a critical role in India’s energy strategy, the country plans to increase its natural gas share in the primary energy basket to 15% by 2030. The country’s increasing reliance on LNG imports, particularly from suppliers like ADNOC, will be vital to meeting future energy needs as domestic production falls short.