Indian Oil resumes purchasing Russian oil through companies not subject to sanctions

Indian Oil Corporation (IOC), which operates 11 refineries in India, purchased five shipments of Russian oil for delivery in December, turning to suppliers that are not subject to US sanctions. Despite the pressure from the US, the company is not going to give up on profitable Russian supplies. This was reported to by Reuters sources.

Last week, Washington imposed sanctions on Rosneft and Lukoil, Russia's two largest oil companies. These measures are intended to increase pressure on Russian dictator Vladimir Putin to end the war in Ukraine.

Following the announcement of sanctions, many Indian refiners, including the state-owned Mangalore Refinery and Petrochemicals Ltd, a joint venture between part of the Mittal Group and Hindustan Petroleum Corporation Limited (HPCL-Mittal Energy Ltd), and the private Reliance Industries, suspended purchases of Russian oil.

However, Indian Oil Corp has purchased about 3.5 million barrels of ESPO crude. Delivery is expected in an eastern Indian port in December.

Earlier, the refiner was forced to cancel seven or eight shipments of Russian oil after the latest US sanctions were imposed because they were supplied by subsidiaries that were subject to restrictions.

The European Union, the United Kingdom, and the United States have imposed a broad package of sanctions on Russia over its aggression in Ukraine, including restrictions on shipping. This has forced Moscow to sell its oil at significant discounts, and over the past three years, India has become the largest buyer of Russian offshore crude oil.

• on October 23, Bloomberg wrote that Russian oil supplies to India will soon be reduced to almost zero after US sanctions.
• On October 28, Indian refineries stopped new purchases of Russian oil after the introduction of new US sanctions against Russia, waiting for clarifications from the government and suppliers on how to proceed.