India’s Largest Oil Company Concludes Agreement To Import Crude Oil From Russia

India’s largest oil company concluded an agreement to import 3 million barrels of crude oil from Russia

Indian Oil Corporation Limited has signed an agreement with a Russian oil company to import 3 million barrels of crude oil, according to NDTV sources.

It was a company-to-company agreement, the source added.

While Western countries have imposed sanctions, including a U.S. oil import embargo, on Russia in response to Moscow’s attack on Ukraine, there are no restrictions on Indian oil companies buying crude from Russian oil companies.

Legitimate Indian energy transactions cannot be politicized, and countries that are self-sufficient in oil or those themselves that import from Russia cannot support tight trade, government sources said yesterday.

That got feedback from the US, which said India importing unwelcome crude oil from Russia would not be considered a violation of sanctions; it would imply supporting the Russian invasion of Ukraine.

Asked about reports on the possibility of India accepting Russia’s discounted crude oil offer, White House Press Secretary Jen Psaki said earlier this week, “I don’t believe this will violate that (restriction).”

“But also think about where you want to stand when the history books are written at this time. Support for the Russian leadership is support for an aggression that is clearly having a devastating impact,” Ms Psaki added.

According to sources today, the crude oil import agreement with the Russian oil company is on the best terms and conditions currently available to India in the international market. The source added that there are no restrictions on Indian oil firms in buying crude oil from Russian companies.

As the U.S. and other western countries imposed sanctions on Moscow, Russia has begun offering oil and other commodities at discounted prices to India and other large importers.

Although historically Indian imports from Russia are low with high transportation costs, more Indian oil companies are likely to conclude contracts with their counterparts from Russia to import crude oil in hopes of getting substantial discounts.

That’s at a time when global crude oil prices have soared above $ 100 a barrel, with benchmark Brent crude hitting a multi -year high of nearly $ 140 a barrel at some point since Russia’s invasion of Ukraine.

India is heavily dependent on crude oil imports for over 80 per cent of its energy needs and will continue to get it from wherever it can access with the best terms and conditions.

The agreement follows high -level ties established between India and the Russian Federation earlier this week.

“In recent weeks, military action has been carried out in Ukraine … The government will explore all available options. There are relations (with Russia) … I myself have held talks at a level appropriate to the Russian Federation. Discussions are now underway. on, “Petroleum Minister Hardeep Puri said at the Rajya Sabha on Monday.

“How much oil is available with Russian or new suppliers? Whenever this arrangement is arranged between our Oil Company and Russia, we will let you know. It is a dynamic and evolving situation characterized by military warfare,” the minister said.

Indian Oil Corporation, the country’s leading energy firm, has bought as many as 3 million barrels of crude oil offered by Russia at a high discount to current international rates, sources said today.


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