India’s IOC Buys Russian Oil from Non-Sanctioned Firms Despite U.S. Pressure
Indian Oil Corp purchased five cargoes of Russian ESPO crude from non-sanctioned suppliers for December delivery, adapting to new U.S. sanctions targeting Rosneft and Lukoil. IOC canceled shipments linked to sanctioned entities and is reviewing documentation to comply with restrictions. India continues to buy Russian oil as long as it does not violate sanctions, balancing energy needs with international relations.
Indian Oil Corp (IOC) has acquired five cargoes of Russian premium-grade ESPO crude from non-sanctioned firms for December delivery, securing around 3.5 million barrels at prices close to Dubai benchmarks. This move comes amid mounting U.S. pressure on India to reduce its energy trade with Russia. Following new U.S. sanctions on Rosneft, Lukoil, and their subsidiaries, IOC canceled several shipments linked to these entities and is now reviewing trade documentation to ensure compliance. Indian state-owned refiners are sourcing oil from alternative, non-sanctioned suppliers under the price cap mechanism. Despite U.S. tariffs and diplomatic pressure, India remains a major buyer of Russian oil, with about 1.8 million barrels per day imported on average. The Kremlin has criticized the sanctions as illegal, while India continues to balance affordable energy imports with its strategic relations with the United States. Analysts expect this balancing act to shape India’s foreign policy in the coming months.
