‘Absolutely no intention of stopping’: IOC continues to import Russian oil despite US restrictions; will buy through non-sanctioned suppliers – The Times of India

Indian oil refiners, including Indian Oil Corporation (IOC), may not completely halt purchases of Russian crude despite new US sanctions, as the measures target specific Russian suppliers and not 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 percent of Russia’s crude oil imports into the country, acts as an aggregator rather than a direct producer, allowing non-sanctioned entities to continue supplying.IOC Director (Finance) Anuj Jain said on an analyst call after the earnings results that the company would continue buying Russian crude as long as it remains in compliance with sanctions. “We are absolutely not going to stop buying Russian crude oil as long as we comply with the sanctions. Russian crude oil is not sanctioned. It is the entities and the shipping companies that have imposed sanctions,” he said. “If someone comes to me with a non-sanctioned entity, and the (price) ceiling is adhered to, and the shipping is OK, then I will continue to buy it,” Jain added.The US sanctions, announced last week, targeted Rosneft and Lukoil to increase pressure on Moscow during the war in Ukraine. However, Indian refiners have suspended new orders while they assess compliance risks. Previously, Surgutneftegas PAO and Gazprom Neft were also blacklisted by the US.Industry officials quoted by PTI said refiners can still buy Russian crude through unsanctioned intermediaries, many of which operate from Dubai or Singapore.IndianOil Chairman Arvinder Singh Sahney said the company “will adhere to all sanctions imposed by the international community,” although he did not confirm whether purchases of discounted Russian oil – which accounted for 21 percent of IOC crude intake last quarter – would stop.Private refineries such as Reliance Industries Ltd. and Nayara Energy are expected to be affected in different ways. Reliance, which has a long-term contract with Rosneft, can scale back due to its exposure to the US, while Nayara, which relies solely on Russian oil, has limited alternatives.Officials noted that Russian crude, currently $3.5 to $5 per barrel cheaper compared to global benchmarks, remains economically attractive. They added that the muted market reaction – with oil prices rising by just $2 per barrel after the sanctions – suggests that traders believe much of Russia’s oil will continue to flow through alternative, non-sanctioned channels.