India to buy Russian oil only if sanctions are avoided

India, the world’s third-largest oil importer, will only purchase Russian crude if it is supplied by companies and ships not sanctioned by the U.S., Oil Secretary Pankaj Jain said.

Western sanctions on Moscow have disrupted global oil trade, forcing buyers of discounted Russian crude to navigate compliance challenges. Jain emphasized that ensuring compliance is the supplier’s responsibility.

India has become the largest buyer of Russian seaborne oil since Western sanctions curbed purchases in response to Russia’s 2022 attack on Ukraine. While India follows UN sanctions rather than those from individual countries, concerns over secondary U.S. sanctions complicate transactions due to Indian banks' and firms’ exposure to the U.S. financial system.

Recent U.S. sanctions targeting Russia’s oil supply chain have impacted Indian refiners, raising tanker freight costs as some buyers and ports avoid sanctioned vessels. Indian refiners have made it clear they will not accept cargo linked to sanctioned entities.

“We won’t take risks. Sellers must ensure clean logistics,” said an Indian refining official.

At the India Energy Week conference, Indian companies met with Russian delegates, including Novatek and Sber Bank, to explore potential energy collaborations.

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