‘Absolutely not going to discontinue’: IOC to keep importing Russian oil despite US curbs; will buy via non-sanctioned suppliers

Indian oil refiners, including Indian Oil Corporation (IOC), may not completely halt purchases of Russian crude despite fresh US sanctions, as the measures target specific Russian suppliers rather than the oil itself. Officials said that while four Russian oil companies have been sanctioned so far, India’s largest supplier, Rosneft, which handles nearly 45 per cent of the country’s Russian crude imports, acts as an aggregator rather than a direct producer — allowing non-sanctioned entities to continue supply.IOC Director (Finance) Anuj Jain said during a post-earnings analyst call that the company would continue buying Russian crude as long as it remained compliant with sanctions. “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 is the entities and the shipping lines which have got sanctions,” he said. “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”, Jain added.The US sanctions, announced last week, targeted Rosneft and Lukoil to increase pressure on Moscow amid the Ukraine war. However, Indian refiners have paused new orders while assessing compliance risks. Earlier, Surgutneftegas PAO and Gazprom Neft were also blacklisted by the US.Industry officials cited by PTI said that refiners could still buy Russian crude through non-sanctioned intermediaries, many of which operate from Dubai or Singapore.IndianOil chairman Arvinder Singh Sahney said the company “will abide by all sanctions imposed by the international community,” though he did not confirm whether purchases of discounted Russian oil — which accounted for 21 per cent of IOC’s crude intake last quarter — would cease.Private refiners like Reliance Industries Ltd. and Nayara Energy are expected to be impacted differently. Reliance, which has a long-term contract with Rosneft, may scale back due to its exposure to the US, while Nayara, dependent solely on Russian oil, has limited alternatives.Officials noted that Russia’s discounted crude, currently cheaper by $3.5–5 per barrel compared to global benchmarks, remains economically attractive. They added that the market’s muted reaction — with oil prices rising just $2 per barrel after sanctions — suggests traders believe much of the Russian oil will continue flowing through alternative, non-sanctioned channels.