India’s top refiner purchases three million barrels of Russian Urals blend despite ban by some countries
© Getty Images / Nikolaev
India has reportedly ignored the latest ban placed on the purchases of Russian crude by some Western countries as part of broader sanctions introduced against Moscow over its military operation in Ukraine.
Indian Oil Corporation (IOC), the country’s biggest refiner, bought some three million barrels of Russian Urals from trader Vitol for delivery in May, according to trade sources, as quoted by Reuters.
The sources added that the Indian company does not see problems in paying for the cargo since oil as a commodity is not banned. Moreover, the IOC was not dealing with a sanctioned entity.
Vitol reportedly sold the cargo at a discount of up to $25 per barrel to dated Brent.
Commercial deals are not commonly disclosed by corporations.
The Indian refiner also purchased two million barrels of Abu Dhabi’s Murban crude and one million barrels each of Nigeria’s Akpo and Forcados, and Cameroon’s Kole, the sources said, providing no details on the price.
While Russian oil has not been sanctioned, commodity traders have been avoiding the country’s crude exports, depressing Urals to record discount levels. Last week, Australia joined the US and UK in banning Russian oil imports.
Earlier this month, Europe’s largest energy company, Shell, apologized for the purchase of Russian crude after the military operations began in Ukraine, promising to donate the profits from the deal to a fund that helps Ukrainian refugees.
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