As energy prices continue to fluctuate and U.S. pressure intensifies, India has taken decisive steps to maintain its fuel supplies.
Indian Oil Corporation (IOC) recently purchased five cargoes of Russian oil from non-sanctioned firms for delivery in December, signaling a strategic move to safeguard the country’s energy needs despite mounting international scrutiny.
IOC Snaps Up 3.5 Million Barrels of ESPO Crude
According to sources cited by Reuters and The Economic Times, IOC secured around 3.5 million barrels of Russia’s premium-grade ESPO (Eastern Siberia–Pacific Ocean) crude.
The deal, reportedly priced near Dubai benchmark levels, will see the oil shipped to India’s eastern ports in December.
The identities of the sellers have not been disclosed.
One market insider noted, “IOC’s recent purchases were made exclusively through non-sanctioned companies,” highlighting the refiner’s cautious approach after new U.S. restrictions came into effect.
Earlier Shipments Halted After U.S. Sanctions
The U.S. Treasury’s announcement on October 22 of fresh sanctions targeting Russian oil giants Rosneft, Lukoil, and their subsidiaries forced Indian refiners to reassess their contracts.
Reuters sources revealed that IOC canceled seven to eight shipments previously scheduled from the newly sanctioned entities.
The Treasury allowed a one-month window for companies to wind down existing operations, emphasizing that the sanctions were a response to “Russia’s lack of genuine interest in the peace process.”
India Reviews All Russian Oil Deals
In the wake of these sanctions, state-owned refiners like IOC undertook a thorough review of their contracts to ensure compliance and avoid links to sanctioned Russian companies.
Bloomberg reported that trading in Russian Urals crude was temporarily suspended while government guidance was sought and alternative supply options assessed.
Market Impact: ESPO Prices Dip
The sanctions prompted a noticeable decline in ESPO crude prices as Chinese refiners canceled multiple purchases.
This drop opened opportunities for Indian buyers to secure additional volumes at more competitive rates, giving IOC and other state refiners a strategic advantage in the short term.
U.S. Intensifies Pressure on India
The United States has repeatedly pressured New Delhi to curb Russian oil imports.
In early August, Washington imposed a 25% import tariff on Indian goods in retaliation for continued Russian oil purchases.
On October 15, former President Donald Trump claimed that Prime Minister Narendra Modi had assured him India would stop buying Russian crude, though a week later, the commitment was softened to “limit purchases” rather than a complete halt.
Russia Condemns Sanctions as Illegal
The Kremlin has labeled U.S. sanctions “illegal” and insists that Russia has developed resilience against them.
Russian officials have criticized Washington’s approach toward India as “de facto threats,” warning that refusal to buy Russian energy could cost India $9–10 billion, comparable to losses from U.S. tariffs, according to President Vladimir Putin.
India’s Balancing Act Continues
Despite the mounting international pressure, India remains a major customer for Russian oil.
Analysts suggest that New Delhi will continue to walk a careful line between securing affordable energy supplies and maintaining strategic relations with Washington.
How India navigates this complex diplomatic and economic landscape will be a key feature of its foreign policy in the coming months.