Chinese and Indian refiners are seeking alternative fuel supplies as they adapt to severe new U.S. sanctions on Russian producers and tankers that are designed to curb the revenues of the world's second-largest oil exporter.

China and India became the largest buyers of Russian crude after the European Union pulled back following the 2022 invasion of Ukraine.

The United States announced a sweeping sanctions package targeting Russia’s oil trade on Friday (January 10), with 183 tankers—a sizable part of the so-called shadow fleet that has kept Russian oil flowing to major consumers such as India and China—being placed under sanctions.