Indias Oil Giant Defies U.S. Sanctions, Increases Russian Crude Imports

India’s largest state-owned oil refiner, Indian Oil Corp (IOC), has resumed its purchases of Russian crude oil, despite U.S. attempts to persuade New Delhi to limit Moscow’s energy revenues, as reported by Reuters on Friday, referring to sources in the trading industry.

IOC has acquired five shipments of Russian oil scheduled for delivery in December from suppliers not affected by sanctions. This includes approximately 3.5 million barrels of high-grade ESPO crude, which typically transports from Russia’s Pacific region to Asia.

This decision follows a brief suspension of purchases last week by Indian refiners after the U.S. imposed new sanctions on major Russian oil companies Rosneft and Lukoil, part of a broader strategy to exert pressure on the Kremlin regarding its actions in Ukraine.

The U.S. Treasury has set a deadline of November 21 for international buyers to disengage from transactions with Rosneft and Lukoil.

Sources indicate that IOC had previously canceled seven to eight shipments linked to newly sanctioned Russian subsidiaries.

The CFO of IOC had stated earlier that the company would maintain its import activities as long as they adhere to the existing sanctions.

Numerous Indian refiners, including Reliance Industries and Mangalore Refinery, have suspended their purchases while awaiting legal clarity.

New Delhi has asserted its right to purchase discounted Russian oil, highlighting its importance for the country’s energy security.

However, this stance has led to tensions with the United States, which increased tariffs on Indian exports this summer while urging India to lower its purchases that contribute to financing Russia’s military efforts.