India’s state-run refiner Indian Oil Corporation Ltd (IOC) has affirmed that it will “absolutely not” stop importing Russian crude oil provided it stays within the boundaries of international sanctions.
The comments come amid renewed U.S. and European Union measures against major Russian oil entities.
Anuj Jain, IOC’s Director (Finance), told analysts on October 28 that the company remains open to purchasing Russian-sourced crude “as long as we are complying with the sanctions. Russian crude is not sanctioned. It is the entities and the shipping lines which have got sanctions.”
He added, “If somebody comes to me with a non-sanctioned entity, and the price cap is being complied with and the shipping is okay, then I will continue to buy it,” according to news agency Reuters.
The firm emphasized that while it remains committed to abiding by all international sanctions, it continues to view Russian crude as a viable source.
IOC Chairman Arvinder Singh Sahney echoed that stance, noting that the company “will abide by all sanctions imposed by the international community.”
New U.S. sanctions, effective from October 22, targeted Russian oil giants Rosneft and Lukoil as part of the West’s effort to pressure Moscow over its invasion of Ukraine.
The European Union also imposed transaction bans on Rosneft, along with restrictions on other Russian oil entities, according to S&P Global Commodity Insights.
Indian refiners had anticipated that these sanctions could prompt some scaling back of Russian crude purchases.
However, because the sanctions are primarily targeted at certain entities and shipping channels—and not a blanket ban on Russian oil itself—IOC is leveraging that distinction to continue imports.
The company said Russian supplies currently account for about 19 to 20 percent of its overall crude oil import basket.
The decision reflects India’s broader strategy of balancing its energy security interests with the need to remain sanction-compliant. Officials say India has adequate supply alternatives but views discounted Russian barrels—often priced several dollars below global benchmarks—as economically attractive.
Analysts at S&P Global Commodity Insights observed that a complete halt by IOC appears unlikely in the short term unless the U.S. escalates measures to include broader trade penalties for oil-importing countries.
They point out that Indian compliance with U.S. sanctions has historically been high and that the Indian government may seek exemptions rather than risk secondary sanctions.
India’s Petroleum and Natural Gas Minister Hardeep Singh Puri has reiterated that the country is not concerned about crude-oil availability, noting that global supplies remain sufficient to meet domestic and export growth.
While some Indian refiners are reviewing their Russian crude exposure or temporarily pausing new orders as they assess compliance risks, IOC’s public position signals that Russian barrels will remain part of its sourcing mix—for now.
Whether this approach will withstand further international pressure—and how it will affect India’s relations with Western partners—remains a matter closely watched by industry and policy-makers alike.
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