MRPL Shares Jump As Russian Oil Tanker Heads To Mangalore

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MRPL Shares Jump As Russian Oil Tanker Heads To Mangalore

The share price of Mangalore Refinery and Petrochemicals Limited (MRPL) is surging.

On Friday, the stock climbed to ₹200.58, up by 8.5% from the previous closing price of ₹184.78. MRPL is currently changing hands for ₹196.75, marking gains of 8.8% over the past five trading days.

Initially Headed to China

The stock rallied after a senior government official revealed on Thursday that the Russian oil tanker Aqua Titan, formerly Lang Ya, is now headed to the New Mangalore port after it was chartered by MRPL. The vessel is expected to arrive on Saturday, March 21.

The tanker, loaded with Russias Urals crude, was reportedly bound to China but later changed its course in the Southeast Asian waters to go to India.

Officials with the Indian government previously said that they have no knowledge of the vessels diversion, but Rakesh Kumar Sinha, Special Secretary in the Ministry of Ports, Shipping and Waterways later confirmed that the tanker is headed to India carrying crude oil.

Sanctioned Vessel

In June, the Aqua Titan was among the 60 ships that Australia sanctioned for carrying Russian crude oil. The Australian government said that the ships employ deceptive practices, including flag-hopping and disabling tracking systems. Aqua Titan is also sanctioned by the U.K., Australia, Canada, EU and Ukraine.

“The Aqua Titan is [also] sanctioned…Essentially, the dark fleet vessels are controlled by the Russian state in the end,” Erik Grundt, senior analyst at Norway-based energy intelligence company Rystad Energy , according to The Hindu,

The US previously slapped India with 25% tariffs for buying Russian crude oil. US President Donald Trump revoked the punitive tariffs after the US and India signed an interim trade agreement.

“India has committed to stop directly or indirectly importing Russian Federation oil,” Trump said.

Aqua Titan rerouted to India after the US said that the country could import Russian crude for 30 days.