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Mumbai
Indian Oil Corporation (IOC), India’s largest state-run refiner, has resumed purchasing Russian crude oil despite mounting pressure from the US government to curb such imports, Reuters and other sources report. The company has placed orders for five shipments of Russian crude slated for December arrival, purchased from suppliers not targeted by US sanctions. These include approximately 3.5 million barrels of ESPO crude, a high-quality grade shipped from Russia’s Pacific region, at prices comparable to Dubai benchmarks.
The move follows recent US sanctions imposed by the Trump administration on Russia’s two largest oil firms, Rosneft and Lukoil, along with their subsidiaries, as part of efforts to restrict Moscow’s revenue streams in its ongoing war in Ukraine. The US Treasury has given global buyers until November 21 to wind down dealings with these firms. Indian refiners had temporarily paused purchases linked to these sanctioned entities but are adapting by sourcing from non-sanctioned companies.
Indian Oil’s finance chief, Anuj Jain, stated that IOC will continue imports as long as the transactions comply with sanctions. Other Indian refiners, such as Reliance Industries and Mangalore Refinery, have also paused purchases pending legal reviews. New Delhi defends its right to buy discounted Russian oil, citing the importance of energy security in a country that imports about 86% of its crude. India has remained one of the top buyers of Russian crude, second only to China in volume share.
However, US-India trade tensions have escalated due to these purchases, with the US raising tariffs on Indian exports this summer amid demands for reduced Russian oil imports. Industry experts note that while Indian refiners continue procuring Russian oil from non-sanctioned entities, the overall share of Russian crude in India’s import basket is expected to decline as sanctions tighten and alternative sources are explored.
This strategic balancing act reflects India’s efforts to maintain energy security while navigating complex geopolitical pressures and sanctions regimes targeting Russian energy exports.
