Won’t absolutely discontinue Russian oil purchases as long as we are sanction compliant, says Indian Oil Executive

We are not going to absolutely discontinue purchasing Russian crude oil as long as we are in compliance with all sanctions, Anuj Jain, Director of Finance at state-owned refiner Indian Oil stated in the second quarter investor call on Tuesday (October 28, 2025). The senior executive of the state-owned refiner argued that it is not Russian crude that has been sanctioned, instead entities and shipping lines that have been sanctioned.

“Today if somebody comes to me which is a non-sanctioned entity, the cap is being complied with and shipping is fine, I will continue to buy it [Russian oil],” he told investors. Mr. Jain was responding to a question about validating source of the buyer in spot market purchases. He assured that a certificate of origin is part of the standard documentation when one makes a payment.

Discounts consistent in past five-six months

Mr. Jain stated in the investor call that Russian crude formed 18-19% of the state-owned downstream refiner’s overall mix in the second quarter. He added that discounts on Russian crude have been “consistent” in the past five to six months at about $2-3 for every barrel.

Greatest point of contention in U.S. trade negotiations

Other than concerns about agricultural trade, India’s purchase of Russian crude oil has been the biggest point of contention towards securing a trade deal with the U.S. This was especially after Washington imposed 50% tariffs on New Delhi which also included a 25% penalty for purchasing Moscow’s oil. U.S., which has been apprehensive about Russian actions in Ukraine and has been seeking an end to the war that started 2022, sanctioned two of their largest oil companies Lukoil and Rosneft on October 23. This was in a bid to curtail their potential to supply to overseas markets.