Indian oil companies halt Russian oil imports, await govt stance

NEW DELHI: Indian oil companies have halted purchasing crude oil from Russia. The decision came after the United States imposed strict sanctions on India, prompting both the central government and suppliers to seek clarity before continuing imports. Reports suggest that the uncertainty around oil purchases has forced some companies to shift to spot buying- sudden, unplanned purchases of oil. The state-owned Indian Oil Corporation has already issued a new tender for crude supply.

Reliance Industries, India's largest private-sector oil refining company, has also turned to spot buying. The US had recently imposed sanctions on major Russian oil companies such as Lukoil and Rosneft. These firms are already facing pressure from the European Union and the United Kingdom due to the ongoing war in Ukraine. As a result, Indian companies are now re-evaluating their fuel supply routes and payment systems.

“Many shipments have been cancelled, especially those linked to traders associated with sanctioned companies,” said a senior official involved in crude storage operations. He added that banks are refusing to process payments for companies listed under sanctions, and no one wants to risk delayed transactions. Another senior official said oil purchases will resume only after there is more clarity from the government and suppliers.