India-China tensions | Indian state oil companies have banned the use of Chinese tankers: Indian state-owned oil and gas companies have decided to suspend bookings of Chinese tankers to transport their crude and petroleum products in the wake of strained relations between the two countries.
Although the ship is registered in a third country, tankers owned or operated by Chinese companies are banned by state-owned oil companies.
Both (Chinese-owned) ships are prohibited from submitting bids on tenders for charter tankers for both import (crude oil) or export of products (such as diesel), Bloomberg reported, citing unidentified sources.
However, this action is unlikely to have a significant impact on trade flows. The ban follows regulatory implementations that last month affected trade with countries that share India’s borders, indirectly referring to China and Pakistan by name.
Government-oil marketing companies are also urging oil traders and suppliers not to send goods to India using Chinese tankers.
The decision is expected to put further pressure on Asia’s two largest economies following a violent border clash in the Galvan Valley in eastern Ladakh in June this year.
Most of the foreign vessels used by Indian oil companies are flagged off in Liberia, Mauritius, and Panama, two Indian oil officials told the news agency that Chinese tankers are mainly used for transporting liquefied petroleum gas.