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Indian Oil Corporation (IOC) and other Indian oil companies have made it clear that they do not intend to completely stop buying Russian oil in compliance with US sanctions.
Indian companies are considering buying Russian oil through some loopholes by striking deals with other unsanctioned entities, if not Rosneft – the oil giant that controls about half of the sanctioned Russian oil production.
“If someone comes to me with a non-approved unit, and the (price) range is being complied with, and the shipping is fine, I will continue to buy it,” said Anuj Jain, director (finance) of IOC.
“As long as we are complying with the sanctions, we are not going to stop (buying Russian crude) at all. Russian crude is not sanctioned. It is the entities and shipping lines that have received sanctions,” Jain stressed during a post-earnings analyst call.
In March 2023, IOC signed a long-term agreement with Rosneft to buy Russian oil, allowing them to get oil at a discounted rate as most Western countries had shunned Russia due to the attacks on Ukraine.
Officials told PTI that Russian crude oil is being sold at a discount of $3.5 to $5 per barrel and Indian companies will take advantage of every possible dollar.
However, no new orders have been placed yet after 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 said many are reportedly considering their options to understand how much they can buy from non-sanctioned entities in Russia.
Russia said on Tuesday (Oct 28) that the Trump administration should not interfere in the country’s oil trade and that buyers can decide for themselves.
“Our partners will make up their minds about whether or not to buy high-quality Russian energy products at a good price.” Kremlin spokesman Dmitry Peskov said“Many people say they’ll figure it out on their own.”