Indian Oil Resumes Buying Russian Crude From Non-Sanctioned Entities: Report

Indian Oil Corporation (IOC), the country’s largest refiner, has resumed purchases of Russian crude oil, sourcing five cargoes for December delivery from non-sanctioned entities, Reuters reported, citing sources.

The move comes even as Washington increases pressure on New Delhi to curb imports of Russian oil. The United States recently imposed sanctions on Rosneft and Lukoil, Russia’s two biggest oil firms, to tighten restrictions aimed at ending Moscow’s war in Ukraine.

Following these sanctions, several Indian refiners, including Mangalore Refinery and Petrochemicals Ltd, HPCL-Mittal Energy and Reliance Industries, paused Russian oil purchases. IOC, however, maintained it would continue to buy Russian crude if transactions remained compliant with international sanctions.

According to Reuters, IOC purchased about 3.5 million barrels of ESPO crude at prices near parity with Dubai benchmarks for delivery to an eastern Indian port in December. The sellers were not disclosed.

The company had earlier cancelled around seven to eight Russian oil cargoes after the latest US sanctions targeted suppliers linked to restricted entities, sources said.

India has emerged as the largest buyer of Russian seaborne oil over the past three years, taking advantage of steep discounts amid Western restrictions.

Meanwhile, China’s demand for ESPO crude has declined as state refiners halted imports following US sanctions and independent refiners exhausted import quotas, pushing down prices and creating an opportunity for Indian refiners to step in.