Indian Oil Corporation Resumes Russian Oil Purchases Amid Sanctions Pressure

Indian Oil Corporation, the foremost refiner in India, has acquired five cargoes of Russian oil set for December delivery, traders reveal. This move comes despite increasing pressure from Washington for India to cease purchasing Russian oil. Last week, Washington imposed sanctions on Rosneft and Lukoil, Russia's two largest oil producers, intensifying efforts against President Vladimir Putin over the conflict in Ukraine.

In response to the sanctions, many Indian refiners, such as Mangalore Refinery and Petrochemicals Ltd, HPCL-Mittal Energy Ltd, and Reliance Industries, have halted Russian oil imports. Conversely, IOC's head of finance, Anuj Jain, stated the company will persist with purchases if sanctions are adhered to.

The European Union, the UK, and the U.S. have collectively enforced a gamut of sanctions on Russia, compelling it to sell oil at significant discounts. Over the past three years, India has emerged as the largest consumer of Russian seaborne crude. Recently, IOC procured around 3.5 million barrels of ESPO crude at a price comparable to Dubai quotes for delivery to an eastern Indian port in December, according to sources who preferred anonymity due to the issue's sensitivity.