Indian Oil Purchases Sanction-Free Russian Crude Amid US Sanctions

Indian Oil Corporation (IOC) is continuing to purchase 'clean' Russian crude oil that avoids US sanctions, according to Chairman Arvind Singh Sahney. Since the onset of the Ukraine conflict, India's imports of Russian oil have surged to nearly 40% of total oil purchases, primarily due to discounts on Russian crude compared to other global options. Despite recent US sanctions targeting specific Russian oil producers and vessels, Sahney stated that these would have a minimal impact on India's energy security, as sufficient global supplies exist. Additionally, IOC anticipates a 6-7% growth in gasoline demand and a 4% increase in diesel demand by fiscal year 2026. The company is also advancing its refinery projects, including an expansion of the Panipat refinery and waiting for approval on a new facility in Nagapattinam. Overall, India's energy strategy focuses on diversifying and securing cost-effective imports.