Indian Oil faces decline in Russian oil imports in this fiscal year

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Indian Oil Corp, the country's top refiner, is facing a potential drop in its Russian oil imports this fiscal year ending March 31, following the latest US sanctions on Moscow, according to its head of finance, Anuj Jain, on Tuesday.

Indian refiners are struggling to secure Russian oil supplies following the latest US sanctions aimed at Russian producers, insurers and tankers to reduce Moscow's oil revenue.

Supply of Russian oil was low so far this month, while Indian Oil is also expecting shortages of Russian cargoes in March, Jain said during an analyst call following the company's December-quarter earnings. He said Russian oil accounted for about a quarter of crude imports by Indian Oil in the first nine months of the current fiscal year, down from 30% in 2023-24.

India became the top buyer of Russian sea-borne oil sold at a discount after some European nations imposed sanctions and halted trade with Moscow following its invasion of Ukraine. IOC will purchase oil from its term supplier and other markets to make up for the shortfall, he said. "There is no dearth of oil," he said, adding that IOC would buy Russian oil only if available at reasonable discounts. Discounts on Russian oil received at Indian ports have also narrowed to around $2 per barrel from $3 a barrels in December, Jain said.