Indian Oil says will abide by all sanctions imposed by international community, pg13.

Key Highlights:

• Indian Oil Corporation (IOC) stated it will abide by international sanctions, following US sanctions on Russian oil giants Rosneft and Lukoil.
• Russian crude constituted 21% of IOC's oil imports between April and September 2025.
• Russia is currently India's largest crude source, accounting for over 35% of India's overall oil imports in 2025.
• Reliance Industries (RIL), a major importer of Russian oil, is assessing the implications of the sanctions and will comply with government guidance.

Detailed Insights:

• The sanctions on Rosneft and Lukoil may lead Indian public sector refiners to avoid direct purchases from these companies, which account for a significant portion of Russia's oil production and exports.
• Other Russian oil exporters and traders not sanctioned could still supply oil to India, but volumes are expected to decrease compared to the past three years.
• Private sector refiners like RIL and Nayara Energy import a majority of Russian crude oil flowing to India, with Rosneft being part of Nayara Energy's promoter group.
• RIL imports a significant portion of its Russian oil directly from Rosneft under a term deal, making it susceptible to secondary sanctions if it continues these imports.
• While the Indian government has not issued formal guidance, RIL is likely to reduce its oil imports from Russia, while IOC adopts a cautious approach, buying Russian oil from third-party traders.

Key Concepts Involved:

• Sanctions: Penalties imposed by one country on another, restricting trade and financial transactions.
• Crude Oil: Unrefined petroleum, a major source of energy and raw material for various products.
• Refiners: Companies that process crude oil into usable products like gasoline and diesel.