India Resumes Russian Crude Oil Imports Despite US Sanctions, Russia Becomes Top Sunflower Oil Supplier
Indian Oil Corporation has restarted purchasing Russian crude oil for December delivery, defying US sanctions, ensuring compliance with international rules. India has become Russia's largest sunflower oil buyer, with imports surging dramatically as Russia overtakes Ukraine due to disrupted supply routes. This strategic diversification supports India's energy security and affordability amid volatile global markets.
India’s largest state-run refiner, Indian Oil Corporation (IOC), has resumed buying Russian crude oil for December delivery amidst renewed US sanctions on Russian energy firms Rosneft and Lukoil. Despite pressure from Washington, IOC procured five cargoes compliant with sanctions, focusing on national energy needs and cost control. This follows temporary pauses by other Indian refiners wary of sanctions risks. Importantly, Indian refiners secured around 3.5 million barrels of ESPO blend crude at competitive prices, benefiting from reduced Chinese demand due to their import quotas and sanctions, making Russian crude economically attractive to India. India has emerged as the world’s largest buyer of Russian seaborne crude over recent years, emphasizing energy supply diversification and affordability.Parallel to crude oil developments, Russia has become India’s leading sunflower oil supplier, overtaking Ukraine due to geopolitical disruptions in Black Sea export routes. India imported approximately 2.09 million tonnes of Russian sunflower oil in 2024, a twelve-fold increase over four years. Domestic production meets only 5% of demand, leaving India heavily reliant on imports. Russia’s stable, competitively priced supply has increased confidence among Indian buyers while Ukraine’s share sharply declined because of logistical challenges from the ongoing conflict. Sunflower oil’s rising consumption, partially driven by its recent price drop below palm oil, complements India’s broader edible oil import pattern where palm, soybean, and sunflower oils dominate. This shift reflects India’s pragmatic approach to securing energy and essential commodities amid complex global geopolitics.
