Amid the rising pressure on India from the United States to cut oil imports from Russia, Indian Oil Corporation said that the company will continue to buy Russian oil. The state-owned petroleum company said that the company has taken a business decision as it heavily relies on Russian Oil.
The United States and President Donald Trump have multiple times alleged that India’s purchase of Russian oil is indirectly funding the Ukrainian war. More recently, White House trade adviser Peter Navarro said in a Financial Times column that India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs.
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Navarro added, “If India wants to be treated as a strategic partner of the U.S., it needs to start acting like one.”
The Indian Foreign Ministry has previously said the country is being unfairly singled out for buying Russian oil while the United States and European Union continue to purchase goods from Russia.
Indian Oil’s reasons
Indian Oil said that in the fiscal year 2024-25, the company’s 22 per cent crude oil came from Russia. The company said that in FY26 and the current quarter, it is getting about 24 per cent of its oil from Russia.
The government-owned company said that it has not received any direction from the government on the purchase of Russian oil.
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“Neither we are being told to buy nor told not to buy. We are not making extra effort to either increase or decrease the share of Russian crude,” Indian Oil said.
Indian Oil said that it is getting a discount of $1.5 per BBL to the Dubai benchmark on the purchase of Russian oil.
India Oil capex plan
According to a Reuters report, India Oil is planning a capital expenditurecapital expenditure of Rs 34,000 crore in FY26. The two major projects in Indian Oil’s expansion plans are the expansion of its refineries in Panipat, Haryana and Vadodara, Gujarat.
The company is also carrying out expansions at its refinery at Paradip, Odisha.
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