Archive · 28 Oct 2025
Indian Oil Corp Continues Russian Crude Imports Amid US Sanctions
Imagine a country called India that buys oil from Russia.
The United States, which is also a big country, has put some new rules (sanctions) on certain Russian oil companies to put pressure on Russia.
Other oil buyers in India have stopped buying new oil from Russia to be safe.
But India's biggest oil buyer, IOC, said they will keep buying Russian oil.
They said they will only buy from parts of Russia that are not on the US's naughty list and use ships that are also not on the list.
They explained that the oil itself isn't banned, just some specific companies.
This is because Russian oil is cheaper, and India needs a lot of oil.
So, IOC is trying to follow the rules while still getting the cheaper oil.
Indian Oil Corporation (IOC) will continue importing Russian crude oil despite new US sanctions.
IOC stated that imports will continue as long as they comply with international sanctions, focusing on non-sanctioned entities and shipping.
Recent US sanctions targeted specific Russian oil companies, leading some Indian refiners to pause new contracts.
Russian crude oil is currently trading at a discount of $3.5–5 per barrel below global benchmarks.
Industry officials suggest that Russian crude can still be sourced through non-sanctioned intermediaries.
- Who
- Indian Oil Corporation (IOC)
- What
- Continuing imports of Russian crude oil despite new US sanctions.
- When
- Following fresh US sanctions last week.
- Where
- India
- Why
- IOC states continued purchases are permissible as long as they comply with international sanctions, targeting non-sanctioned entities and shipping, and the oil is sourced at a discount.
IOC's Stance
US Sanctions Impact
Import Continuation
IOC's Stance
IOC plans to continue importing Russian crude as long as transactions comply with sanctions, focusing on non-sanctioned entities and shipping.
US Sanctions Impact
New US sanctions target specific Russian oil companies, leading other Indian refiners to pause new contracts due to compliance risks.
Compliance Interpretation
IOC's Stance
IOC's Director (Finance) stated that Russian crude itself is not sanctioned, only specific entities and shipping lines, allowing continued trade if parties and logistics are not barred.
US Sanctions Impact
The sanctions are designed to increase pressure on Moscow, implying a broader impact on Russian oil trade, even if direct crude is not universally banned.
Sourcing Channels
IOC's Stance
IOC, along with other refiners, can still buy Russian crude through non-sanctioned intermediaries, often operating from Dubai or Singapore.
US Sanctions Impact
Sanctions specifically targeted major suppliers like Rosneft, which aggregates a significant portion of India's Russian crude imports.
- Company Continuing Imports
- Indian Oil Corporation (IOC)
- Reason for Continuation
- Compliance with international sanctions, using non-sanctioned entities and shipping.
- Sanctioned Entities Mentioned
- Rosneft, Lukoil, Surgutneftegas PAO, and Gazprom Neft
- Rosneft's Role in India
- Aggregates ~45% of India's Russian crude imports.
- Discounted Russian Oil Price
- $3.5–5 per barrel below global benchmarks
- Russian Crude in IOC's Intake (Last Quarter)
- 21%
Sources
Oil India's $300 million dividend from Russian fields stuck in Russian banks, chairman says
Oil India’s $300 million dividend trapped in Russia due to US sanctions: Report
IndianOil to continue buying Russian crude from non-sanctioned channels
