‘Indian Oil resumes Russian crude purchase’, Pg6.

Key Highlights:

• Indian Oil Corp (IOC) will resume purchasing Russian oil with five cargoes scheduled to arrive in December.
• The purchase involves 3.5 million barrels of ESPO crude at parity to Dubai quotes.
• This decision follows a pause by other Indian refiners after US sanctions on Rosneft and Lukoil.
• IOC states it will continue buying Russian oil as long as the transactions comply with sanctions.

Detailed Insights:

• The US has been pressuring India to reduce its intake of Russian oil to limit Russia's revenue amid the Ukraine war.
• Several Indian refiners, including Mangalore Refinery, HPCL-Mittal Energy, and Reliance Industries, had previously paused Russian oil purchases due to sanctions.
• ESPO crude is a grade of oil exported via the East Siberia–Pacific Ocean oil pipeline, primarily loaded at Kozmino port.
• India's continued purchase of Russian oil, while within sanction limits, reflects its need to balance geopolitical pressure with its energy security interests.

Key Concepts Involved:

• Sanctions: Penalties imposed by one or more countries against a targeted country, entity, or individual.
• Crude Oil: Unrefined petroleum, a naturally occurring mixture of hydrocarbons.
• Parity: The state or condition of being equal, especially regarding status or pay.