Russian crude: Indian Oil to continue buying from non-sanctioned firms
Virendra Pandit
New Delhi: Stressing that Russian crude oil itself is not under Western sanctions, Indian Oil Corporation Ltd (IOCL), the country’s largest fuel retailer, said on Tuesday it will continue to buy energy from non-sanctioned Russian companies and use services of similar shipping lines, the media reported on Tuesday.
IOCL is the country’s largest oil marketing company (OMC) which runs over 40,000 fuel stations across India.
During a company results call with analysts, when asked whether it will stop buying Russian oil, IOCL Director (Finance) Anuj Jain said: “No. See, we are absolutely not going to discontinue as long as we are doing the compliance of the sanctions.”
He clarified that Russian crude itself has not been sanctioned. It is the entities and the shipping lines which have been sanctioned, according to media reports.
“So, today, if somebody from a non-sanctioned entity comes and the cap (price) is being complied with, the shipping is okay, then I will continue to buy it. We know the source of the crude (bought from spot markets). The certificate of origin is absolutely important and part of standard documents when you make payments,” he emphasised.
This means that IOCL will continue to buy Russian crude, at least for now. The US sanctions against the two Russian companies will start on November 21, 2025.
Jain explained that Indian Oil keeps a database of all the sanctioned entities in the crude oil and gas supply chain, which is regularly updated.
“Besides these two sanctioned Russian companies (Rosneft and Lukoil), there were similar entities in the past also (that have been sanctioned). So, we maintain a data bank. When we purchase, we comply with all the international sanctions,” he assured.
While Russian crude oil accounted for 24 percent of IOCL’s cumulative purchases in the April-June quarter in 2025-26, it came down to 20 percent during the July-September period. Its total procurement in H1 FY26 stood at around 21 percent.
Jain’s comments came a day after IOCL Chairman Arvinder Singh Sahney told reporters that the OMC will abide by the sanctions. He did not comment on the quantum of Russian cargoes the company will henceforth procure.
Indian refiners are awaiting clarity from the government on the latest sanctions on Russia by the US, the UK and the European Union.
Traders are of the view that the sanction enforcement will be “selective” with the aim to reduce Russia’s crude oil exports.
The rationale is to bring down Moscow’s revenues from the oil trade and push it to end the war in Ukraine. The sanctions are aimed at not halting the supplies as it will stoke volatility sending crude oil prices north.
Crude oil markets are already facing oversupply coupled with fears of a global output decline following the tariff war between the US and China.
