IOCs Strategic Shift: Navigating Sanctions with Clean Russian Oil

Indian Oil Corporation is purchasing Russian crude oil that adheres to US sanctions. As the second-largest buyer of Russian oil since the Ukraine invasion, India is sourcing 'clean' oil, ensuring tankers used are not sanctioned and are properly insured. The aim is to maintain energy security without sanctions implications.

The Indian Oil Corporation (IOC), led by Chairman Arvindar Singh Sahney, has revealed its strategy to continue purchasing Russian crude oil while remaining in compliance with US sanctions. Sahney assured that the oil being sourced is 'clean,' reducing the risk of international legal issues.

Since February 2022, when Russia invaded Ukraine, India has become the second-largest importer of Russian oil, with imports surging to around 40 percent of its total oil purchases due to favorable pricing. Despite recent US sanctions aimed at curtailing Russia's energy trade, Indian firms continue to seek well-sourced Russian oil.

The sanctions affect only 183 of the approximately 600 Russian oil tankers, and India plans to secure transportation through non-sanctioned means. As a contingency, India remains open to sourcing oil from the Middle East and elsewhere to fill any gaps caused by reduced Russian supplies.