'Absolutely not going to discontinue': IOC to buy Russian oil from non-sanctioned entities

Indian Oil Corporation (IOC) and other Indian oil firms made clear they do not intend to completely stop purchasing Russian oil while complying with the US sanctions.

Indian firms are considering buying

Russian oil through some loopholes by dealing with other non-sanctioned entities, if not Rosneft--the oil giant controlling nearly half of Russian oil production which was sanctioned.

IOC Director (Finance) Anuj Jain said, "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". 

"We are absolutely not going to discontinue (buying Russian 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," Jain emphasised during the post earnings analyst call.

In March 2023, IOC had signed a long-term agreement with Rosneft to buy Russian oil, getting their hands on oil at a discounted rate as most western countries shunned Russia due to attacks on Ukraine.

Officials told PTI that Russian crude is being sold at a discount of between $3.5 to $5 per barrel and that Indian companies would capitalise on every dollar possible.

However, no new orders have been placed yet since the US announced sanctions on Russian oil companies like Rosneft and Lukoil last week. Other major producers, Surgutneftegas PAO and Gazprom Neft, were blacklisted earlier.

He added that many are reportedly weighing their options to understand how much they can buy from non-sanctioned entities in Russia.

Russia said Tuesday (October 28) that the Trump administration should not interfere in the country's oil trade and that buyers can make decisions for themselves.

"Our partners will make up their own mind about whether or not to buy top quality Russian energy products at a good price," Kremlin spokesman Dmitry Peskov said. "Many say they will figure it out for themselves."