- Indian Oil purchases Russian oil from non-sanctioned entities; ‘will continue to buy if…’
- Despite US President Donald Trump’s renewed pressure to stop Russian crude imports, Indian Oil Corporation says it will continue sourcing from non-sanctioned suppliers in full compliance with international rules
India’s state-run Indian Oil Corporation (IOC) has placed orders for five Russian crude cargoes scheduled for December delivery, signaling that New Delhi’s energy strategy remains pragmatic despite political pressure from Washington, reported timesofindia.indiatimes.com.
According to a Reuters report, IOC procured the shipments from non-sanctioned Russian entities, even as the Trump administration recently imposed restrictions on major Russian oil firms Lukoil and Rosneft. While some Indian refiners have scaled back purchases in response, IOC maintains it will honor sanctions but not compromise on supply security.
IOC has bought around 3.5 million barrels of ESPO crude—priced close to Dubai benchmarks—for delivery at an eastern Indian port, trade sources told Reuters. However, the firm had earlier withdrawn from several cargo agreements linked to subsidiaries of sanctioned companies.
“We are absolutely not going to discontinue (buying Russian crude) as long as we are complying with the sanctions. Russian crude is not sanctioned — it’s the entities and the shipping lines that are,” said IOC Director (Finance) Anuj Jain during a post-earnings analyst call
He added, “If somebody comes to me with a non-sanctioned entity, and the price cap is being complied with, and the shipping is okay, then I will continue to buy it.”
The statement underscores India’s stance that energy security and legal compliance can co-exist, even amid geopolitical shifts.
Other Indian refiners suspend Russian oil purchases
Following the latest US sanctions, several Indian refiners—including Mangalore Refinery and Petrochemicals Ltd (MRPL), HPCL-Mittal Energy Ltd, and Reliance Industries—have temporarily halted Russian crude procurement.
However, officials noted that Rosneft, India’s primary Russian supplier accounting for about 45% of Russian crude imports, functions mainly as an aggregator, allowing non-sanctioned companies to continue fulfilling supply contracts.
Why Russian oil remains attractive for India
Despite extensive sanctions from the US, UK, and EU over the Ukraine conflict, Russian crude continues to offer significant discounts, making it highly competitive. Over the past three years, India has emerged as the largest buyer of Russian seaborne oil, benefiting from favorable pricing amid global volatility.
Traditionally, Russian ESPO crude shipped from the Kozmino port served mainly Chinese refiners. But with Chinese demand softening after US sanctions and quota limits, prices have fallen further, giving Indian refiners an added incentive to keep buying.
For India, which imports over 85% of its crude, diversifying suppliers remains essential. IOC’s recent moves show that while political winds may shift, energy pragmatism continues to guide policy decisions.
