On Monday, without commenting directly on the company’s ongoing purchase of Russian crude, the IOC (Indian Oil Corporation) chairman, Arvinder Singh Sahney, stated that the country’s largest state-owned refiner will fully comply with all international sanctions on crude oil imports from Russia.
According to its exchange filings, the company experienced a significant increase in profit, rising from ₹180.01 crore to ₹7,610.45 crore. Its total revenue for the quarter was ₹2.03 trillion, which is nearly 4% higher than the previous year.
Due to Western sanctions, there has been a recent reassessment, as trade data shows that Russian oil made up about 21% of IOC’s total crude imports from April to September. The reliance on discounted Russian barrels is a major factor behind the heavy dependence on Russia for oil imports.
The U.S. imposed sanctions on Russian energy giants Rosneft and Lukoil to reduce Moscow’s oil revenue amid the Ukraine conflict. Following this, the EU responded with its own measures, banning transactions involving Rosneft and Gazprom Neft.
The recent US restrictions have prompted IOC’s subsidiary, Chennai Petroleum Corporation Ltd. (CPCL), to reduce Russian crude imports by 50% this month. To mitigate the risk of secondary sanctions affecting shipping and financial transactions, Indian refiners have halted purchases of Russian oil.
Reliance Industries Ltd, led by Mukesh Ambani, pledged to fully comply with Western sanctions and maintain operations through diversified sourcing. As India’s largest private refiner and the top Russian oil importer, Reliance has a long-term contract with Rosneft for up to 500,000 barrels per day.
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An official response has yet to be announced. Still, the recent actions by Indian refiners, the escalating geopolitical pressures, and Russia’s energy trade network are the silent echoes of the shift away from reliance on Russia.
