India’s HPCL faces challenges paying for Russian oil as banks baulk: Source

BARMER, India (Reuters) – India’s state-run Hindustan Petroleum Corp is facing difficulties in paying for Russian oil imports following a Dec. 5 price cap imposed by Western nations as banks shy away from processing payments, a company official said on Tuesday.

While Western sanctions against Moscow are not recognised by India – and purchases of Russian oil may not violate them – banks and financial institutions are cautious about clearing payments so as not to unwittingly fall foul of the measures.

HPCL is looking for alternative banking channels after some Indian banks with huge exposure to the United States and the western economies stopped facilitating payments, the source, who did not wish to be identified, told reporters on a press trip with India’s energy minister.