NEW DELHI: State-run IndianOil Corporation Ltd (IOCL), the country’s largest oil refiner and fuel retailer, announced on Monday that it will comply with international sanctions, in an apparent reference to the latest US curbs on Russian oil giants Rosneft and Lukoil.
“We will abide by all sanctions imposed by the international community,” said Arvinder Singh Sahney, chairman of IndianOil, while declining to specify whether the company would stop purchasing discounted Russian crude.
IndianOil becomes the second Indian refiner, after Reliance Industries Ltd, to signal compliance with the new US and EU restrictions targeting imports of oil and refined products linked to Russian entities.
The announcement came as the company reported a net profit of ₹7,610 crore for the July–September quarter, a sharp rise from ₹180 crore a year earlier. The surge was attributed to a jump in refining margins, which climbed to $10.6 per barrel from $1.8 in the same period last year, along with modest inventory gains.
Asked whether Russian crude — which accounted for 21% of IndianOil’s total intake during the quarter — boosted margins, Sahney said, “It is about market conditions, cracks, cost reduction, and efficiency improvements. We have achieved similar results earlier without Russian crude.”
The clarification comes amid concerns that halting Russian crude purchases could impact profitability. Public sector refiners like IndianOil have been sourcing Russian oil via intermediaries through global tenders, unlike private refiners who often deal directly.
However, with Washington’s latest sanctions branding crude from entities like Rosneft and Lukoil as “tainted”, Indian refiners are expected to diversify their sourcing to avoid the risk of secondary sanctions after the November 21 cut-off.
Notably, imports by Chennai Petroleum Corporation Ltd, an IndianOil subsidiary, have already halved in October, coinciding with the tightening of US restrictions.
