‘More Than Happy to Buy More US Gas; Can Buy Russian Oil via Clean Channel’: IOC Chairman

🛢️ Indian Oil Corporation (IOC) Secures "Clean" Russian Crude Amid US Sanctions

📌 India’s Strategic Oil Purchases from Russia

India has emerged as the second-largest buyer of Russian crude oil since the Ukraine conflict began in February 2022. Before the war, Russian oil accounted for less than 1% of India’s total crude imports. Today, it makes up nearly 40% of total oil purchases, driven by discounted pricing due to Western sanctions.

🔺 US Sanctions & Their Impact on Russian Oil Trade

• 🚨 The US recently imposed new sanctions on Russian oil trade, targeting:
  • Major oil producers like Gazprom Neft and Surgutneftegas.
  • 183 vessels that have shipped Russian oil.
• ⚠️ Russia had been using a "shadow fleet"—tankers insured by its own companies—to bypass the $60 per barrel price cap imposed by the G7 nations, EU, and Australia.
• ⛴️ Sanctioned tankers will no longer be allowed to dock at Indian ports.

💡 Indian Oil's Strategy: Buying "Clean" Russian Crude

IOC Chairman Arvindar Singh Sahney clarified that Indian oil firms will continue to purchase Russian crude but only from "clean" sources that do not violate US sanctions.

• ✅ Indian firms will contract oil shipments with sanction-free tankers that have proper insurance.
• 🛳️ Russian oil purchases are on a delivered basis, meaning suppliers must arrange transportation.
• 🔄 If necessary, Indian refiners will increase crude imports from the Middle East and other sources.

📉 Russia’s Oil Discount Shrinking

Sanctions have forced Russia to offer deep discounts on its Urals grade crude. Initially, this discount was substantial, but it has now fallen to just $2-3 per barrel. Over time:

• 📉 In the first year of sanctions, Russia lost 23% of its monthly oil revenue.
• 📈 In the second year, losses dropped to just 9%, as Russia built a shadow fleet to bypass the price cap.

🔮 What Lies Ahead for India’s Oil Imports?

• 🛢️ If Russian supplies are disrupted, India may turn to Middle Eastern oil to meet demand.
• 💰 The key concern for India is the loss of discounts on Russian oil rather than a supply shortage.
• 📊 Despite sanctions, Rosneft, Russia’s primary supplier to India, remains unaffected.

📌 Final Verdict: India’s Energy Security Stays Intact

While new sanctions add complications, India’s strategic planning ensures no immediate disruption to oil supply. However, discounted Russian crude may soon become a thing of the past.

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