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Informist, Friday, Sept. 12, 2025

AHMEDABAD – Adani Ports and Special Economic Zone Ltd. has, effective Thursday, barred vessels under sanctions by the UN, the US, the UK, or the European Union from entering, berthing, or using any facility or service at any of its ports, according to several trade and company sources. A company official, quoting an internal order, said the step was a "compliance" measure taken "to safeguard legal and commercial interests". The official said the company had issued the order separately to all its ports and terminals across India.

Quoting from the order, the Adani Ports official said it would be the "sole responsibility of shipowners, charterers, consignees, consignors, and/or their agents to conduct comprehensive sanctions due diligence and screening prior to providing vessel nomination. At the time of nomination, the vessel's agent shall be required to provide a written undertaking that the vessel is not subject to sanctions."

As of Jun. 30, Adani Ports owned 15 ports across India with a cumulative capacity to handle 633 million tonnes of cargo. It also operates ports in Israel, Tanzania, and Sri Lanka. In the June quarter, the company handled 120.6 million tonnes of cargo, up 11% on year. In the first five months of the financial year 2025-26 (Apr-Mar), the company's total cargo volume had reached 202.6 million tonnes, also up 11% on year.

The order from Adani Ports comes in the wake of sanctions imposed on Russian ships, primarily by the US and its allies, as a consequence of the Russia-Ukraine war. The US administration has taken an aggressive stance against India for being a major buyer of discounted Russian crude oil. Peter Navarro, trade adviser to US President Donald Trump, even went recently to the extent of labelling the Russia-Ukraine conflict "(Prime Minister Narendra) Modi's war", saying India's continued purchases of discounted Russian oil was indirectly funding Russia's war effort. The Trump administration has imposed 50% tariff on Indian exports to the US, resulting in massive uncertainty across several sectors, including garments and diamonds, and a growing fear of large-scale job losses.

The trade sources said much of the Russian crude oil that makes its way to India may be shipped through tankers sanctioned by the US and its allies. The biggest hit from the decision by Adani Ports could be to state-owned oil-marketing companies Hindustan Petroleum Corp. Ltd. and Indian Oil Corp. Ltd. Both have crude oil landing facilities at the Adani group's flagship Mundra port in Gujarat. HPCL-Mittal Energy's refinery with a capacity of 9 million tonnes per annum at Bathinda in Punjab and a part of Indian Oil's 15 mtpa refinery at Panipat in Haryana receive imported crude oil at Mundra's single point mooring system, from where it is transported to the respective refineries through pipelines.

Several media reports suggest that other than Russian vessels, the US sanctions list includes ships from Iran, North Korea, Syria, Venezuela, Cuba, and Belarus. When approached, the company's spokesperson refused to comment on the subject.

Thursday, shares of Adani Ports closed slightly higher at INR 1,393.10 on the National Stock Exchange.  End

Reported by Sunil Raghu

Edited by Rajeev Pai

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