(Commonwealth_India) Indian Oil Corporation (IOC), the country’s largest oil refiner, has said it will follow all international sanctions, though it stopped short of clarifying whether it will continue purchasing Russian crude. “We will abide by all sanctions imposed by the international community,” said IOC Chairman Arvinder Singh Sahney while addressing the company’s latest quarterly results. His statement comes at a delicate time for India’s energy sector, which has been navigating a fast-changing geopolitical landscape around Russian oil.
IOC reported a strong financial performance for the July–September quarter, posting a net profit of ₹7,610 crore, a dramatic jump from just ₹180 crore during the same period last year. Sahney attributed this surge in profits to favourable market conditions, improved efficiency, and cost reductions. Yet, behind the numbers lies a larger story of how Indian refiners are adjusting to new global realities.
For the past two years, discounted Russian oil has been a key part of India’s energy strategy, helping refiners cushion the impact of high global crude prices. However, the landscape is shifting once again. The United States has imposed new sanctions aimed at cutting off Moscow’s oil revenues, and these measures, effective from late October, have begun to reshape the sourcing strategies of Indian oil companies. Refiners are currently exercising caution to avoid secondary sanctions that could potentially disrupt global payments or trade finance systems.
Between April and September, Russian oil made up roughly 21 per cent of IOC’s total crude imports. However, as the new sanctions tighten around major Russian producers such as Rosneft and Lukoil, we anticipate a sharp decline in this share. IOC’s subsidiary, Chennai Petroleum Corporation Ltd (CPCL), has already reduced its Russian oil intake by half this month. The timing coincides with new restrictions introduced by the U.S. on October 22, followed soon after by the European Union’s own bans on transactions involving Rosneft and Gazprom Neft.
The Indian government has not yet issued an official response to these developments. However, industry officials say the real test will be how global banking systems respond, particularly whether dollar-based transactions with Russian entities face further hurdles. If that happens, refiners may have no choice but to pivot toward Middle Eastern or African crude, even if that means higher costs.
Reliance Industries, the country’s largest private oil importer, finds itself in a similar position. The company has a long-term agreement with Rosneft to import up to 500,000 barrels per day. But signs suggest Reliance may soon pause those shipments, as it has emphasised strict compliance with international regulations. The company, which operates the massive Jamnagar refining complex in Gujarat—one of the largest in the world—said it is already adapting its operations to meet new EU, UK, and U.S. compliance standards.
For Rosneft-backed Nayara Energy, however, the situation is far more complicated. The refiner has been heavily dependent on Russian crude since earlier EU sanctions restricted access to other suppliers. As new sanctions tighten their grip, Nayara must find alternative oil sources while adhering to international law.
India’s refiners are now reaching a period of recalibration, one that will assess their flexibility and pliability. As universal politics continue to outline energy markets, the adoptions these corporations make in the coming weeks could redefine not just their profit limits but also India’s larger role in the international oil trade.
