India's State-Owned Oil Company Defies US Pressure, Plans to Continue Buying Russian Oil

The Indian Oil Corporation has announced that it will continue to purchase Russian oil, defying growing pressure from the United States to cut off imports. The company, which relies heavily on Russian oil, claims to have taken a business decision that will not be influenced by external pressures. According to Indian Oil, 22-24% of its crude oil comes from Russia, and it has not received any instructions from the government to stop or increase the purchase of Russian oil.

Key Takeaways:

• Indian Oil plans to continue buying Russian oil, despite US pressure to cut off imports.
• The company relies on Russian oil for 22-24% of its crude oil supplies.
• Indian Oil has not received any directions from the government to stop or increase the purchase of Russian oil.
• The company is getting a discount of $1.5 per barrel to the Dubai benchmark on the purchase of Russian oil.
• Indian Oil is planning a capital expenditure of Rs 34,000 crore in FY26, which includes expanding refineries in Panipat, Haryana, and Vadodara, Gujarat, as well as at its Paradip refinery in Odisha.
• The company has taken a business decision to maintain its reliance on Russian oil, despite allegations that India's purchase of Russian oil is indirectly funding the Ukrainian war.

Statistics:

• 22-24% of Indian Oil's crude oil comes from Russia.
• Indian Oil is getting a discount of $1.5 per barrel to the Dubai benchmark on the purchase of Russian oil.
• Rs 34,000 crore: the planned capital expenditure of Indian Oil in FY26.
• 3 major refinery expansion projects: Panipat, Haryana; Vadodara, Gujarat; and Paradip, Odisha.

Sources:

• Reuters report: "Indian Oil plans Rs 34,000 crore capex for FY26"
• Contify.com: [No date] - "Indian Oil to continue buying Russian oil despite US pressure"