Indian Oil Resumes Russian Oil Purchases Amid Sanctions

Indian Oil Corp has resumed buying Russian oil, purchasing five cargoes for December despite U.S. pressures. As global sanctions impact Russia, its oil is sold at discounts. This makes Russian crude attractively priced for Indian refiners, positioning India as a top buyer.

Indian Oil Corp, India's leading refiner, has bought five shipments of Russian oil scheduled for December arrival, reportedly from non-sanctioned entities, said traders. This move comes despite Washington's ongoing pressure on India to halt Russian oil imports, following sanctions on Rosneft and Lukoil, two of Russia's major oil firms, as part of efforts to end the conflict in Ukraine.

Several Indian refiners, including Mangalore Refinery and Petrochemicals Ltd and Reliance Industries, the world's largest refining complex operator, have halted Russian oil purchases. However, Anuj Jain, IOC's head of finance, stated the company would continue buying Russian oil if it complies with sanctions.

While the EU, UK, and US have imposed multiple sanctions against Russia over the Ukraine war, Russian oil is being offered at steep discounts. Over the past three years, India has emerged as the leading purchaser of Russian seaborne crude. IOC's latest purchase involves approximately 3.5 million barrels of ESPO, priced close to Dubai quotes, intended for an eastern Indian port in December.

(With inputs from agencies.)