‘Will abide by all sanctions…’: Indian Oil Corporation on US, EU curbs
Russian oil accounted for 21 per cent of Indian Oil Corporation's (IOC) crude imports during April-September. With tightened restrictions, refiners are reassessing procurement plans to avoid potential repercussions from Western authorities.
- Oct 28, 2025,
- Updated Oct 28, 2025 8:44 AM IST
Indian Oil Corporation (IOC), the nation’s largest oil company, said it will comply with all the sanctions. IOC Chairman Arvinder Singh Sahney made the statement but steered clear of clarifying on purchases of Russian oil.
"We will abide by all sanctions imposed by the international community," he said. His statement comes as Indian Oil posted a net profit of Rs 7,610 crore in the July-September quarter against Rs 180 crore a year ago. Sahney said it was mostly about market conditions, cost reduction and improvement in efficiency.
Sahney’s statement assumes importance amid Indian refiners scaling back on the import of Russian oil to avoid secondary sanctions as the US imposed fresh sanctions to curb Moscow’s earnings from oil sales. The move, effective from late October, has shifted sourcing strategies for Indian firms that had relied on discounted Russian oil.
Russian oil accounted for 21 per cent of Indian Oil Corporation's (IOC) crude imports during April-September. With tightened restrictions, refiners are reassessing procurement plans to avoid potential repercussions from Western authorities.
IOC’s subsidiary, Chennai Petroleum Corporation Ltd (CPCL), halved its Russian oil imports this month, coinciding with the latest US sanctions targeting Rosneft and Lukoil. These measures, introduced by US President Donald Trump on October 22, were followed by the EU’s transaction bans on Rosneft and Gazprom Neft. While the Indian government has yet to issue an official response, industry sources said Indian refiners' import strategy would largely depend on how banking systems respond to the latest restrictions.
Reliance Industries Ltd, India’s largest private oil importer, maintains a long-term contract with Rosneft for up to 500,000 barrels per day. Recent developments suggest Reliance may be among the first to halt Russian imports, as the company has emphasised regulatory compliance. To adapt to the new regulatory environment, Reliance, which operates the 1.24 million barrels per day Jamnagar refining complex in Gujarat, stated that it will adapt its refinery operations to meet new compliance requirements following restrictions announced by the EU, UK and the US.
Rosneft-backed Nayara Energy faces greater challenges, as it is currently dependent solely on Russian oil due to earlier EU sanctions restricting alternative suppliers.
Indian Oil Corporation (IOC), the nation’s largest oil company, said it will comply with all the sanctions. IOC Chairman Arvinder Singh Sahney made the statement but steered clear of clarifying on purchases of Russian oil.
"We will abide by all sanctions imposed by the international community," he said. His statement comes as Indian Oil posted a net profit of Rs 7,610 crore in the July-September quarter against Rs 180 crore a year ago. Sahney said it was mostly about market conditions, cost reduction and improvement in efficiency.
Sahney’s statement assumes importance amid Indian refiners scaling back on the import of Russian oil to avoid secondary sanctions as the US imposed fresh sanctions to curb Moscow’s earnings from oil sales. The move, effective from late October, has shifted sourcing strategies for Indian firms that had relied on discounted Russian oil.
Russian oil accounted for 21 per cent of Indian Oil Corporation's (IOC) crude imports during April-September. With tightened restrictions, refiners are reassessing procurement plans to avoid potential repercussions from Western authorities.
IOC’s subsidiary, Chennai Petroleum Corporation Ltd (CPCL), halved its Russian oil imports this month, coinciding with the latest US sanctions targeting Rosneft and Lukoil. These measures, introduced by US President Donald Trump on October 22, were followed by the EU’s transaction bans on Rosneft and Gazprom Neft. While the Indian government has yet to issue an official response, industry sources said Indian refiners' import strategy would largely depend on how banking systems respond to the latest restrictions.
Reliance Industries Ltd, India’s largest private oil importer, maintains a long-term contract with Rosneft for up to 500,000 barrels per day. Recent developments suggest Reliance may be among the first to halt Russian imports, as the company has emphasised regulatory compliance. To adapt to the new regulatory environment, Reliance, which operates the 1.24 million barrels per day Jamnagar refining complex in Gujarat, stated that it will adapt its refinery operations to meet new compliance requirements following restrictions announced by the EU, UK and the US.
Rosneft-backed Nayara Energy faces greater challenges, as it is currently dependent solely on Russian oil due to earlier EU sanctions restricting alternative suppliers.