India’s Top Refiner Resumes Buying Russian Oil Despite U.S. Pressure
India’s largest state-owned oil refiner, Indian Oil Corporation (IOC), has restarted purchases of Russian crude oil despite U.S. efforts to limit Moscow’s energy revenue, Reuters reported, citing traders.
IOC acquired five shipments of Russian oil for December delivery from suppliers not subject to sanctions. These include 3.5 million barrels of ESPO crude, a high-quality oil grade typically shipped from Russia’s Pacific coast to Asia.
This decision follows a brief pause last week by Indian refiners after the U.S. imposed new sanctions on Russia’s major oil producers Rosneft and Lukoil to pressure the Kremlin over its war in Ukraine. The Treasury has set November 21 as the deadline for global buyers to cease dealings with these sanctioned companies.
Traders noted that IOC had canceled seven or eight shipments earlier because they were linked to newly sanctioned Russian subsidiaries. The company’s finance chief stated that imports would continue as long as transactions remain within the boundaries of sanctions.
- Other Indian refiners like Reliance Industries and Mangalore Refinery paused purchases pending legal review.
- New Delhi defends its right to buy discounted Russian oil, highlighting its importance for energy security.
- The issue has caused tensions with the United States, which raised tariffs on Indian exports this summer while urging India to reduce purchases that support Russia’s war effort.
“The company would continue imports as long as transactions comply with sanctions.”
The situation underscores the complex balance India maintains between securing affordable energy and managing diplomatic relations with the United States amid ongoing geopolitical conflicts.
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Author's summary: Indian Oil Corporation resumed buying Russian crude despite U.S. sanctions, emphasizing energy security while navigating geopolitical pressures.