Biggest Indian Oil Company Finalises Deal To Import 3-Million Barrels Of Crude Oil From Russia

Biggest Indian oil company finalises deal to import 3-million barrels crude oil from Russia

The Indian Oil Corporation Limited (IOCL) has contracted a deal with a Russian Oil company to import 3-million barrels of crude oil, according to NDTV sources. 

It is a company-to-company deal, said the sources. 

The import deal with the Russian Oil company is on the best terms and conditions currently available to India in the international market.

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

As the US and other western nations slapped sanctions on Moscow, Russia has begun offering oil and other commodities at discounted prices to India and other large importers.

More Indian oil companies are likely to finalise contracts with Russian oil companies to import crude oil. 
That at a time when global crude oil prices have surged to above $100 a barrel, with the benchmark Brent crude touching multi-year highs of near $140 a barrel at one point since Russia’s invasion of Ukraine.

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

The deal follows a high-level contact established between India and the Russian Federation earlier this week. 

Petroleum Minister Hardeep Puri, in the Rajya Sabha on Monday, in response to a question, had said, “in the last few weeks, military action is on…the government will explore all options available.”

There are reports and contacts with Russian authorities…I had a conversation at the appropriate Russian Federation level. Discussions are currently underway, said Mr Puri.

“How much of oil is available with Russia or with new suppliers…whenever these arrangements are worked out between our oil companies and Russia…we will let you know…It is a dynamic evolving situation characterized by military warfare,” he had added.