State-owned refiners Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) have secured January orders for the loading of Russian oil from non-sanctioned suppliers, as discounts widen, according to trade sources familiar with the transactions.
BPCL has purchased four cargoes, consisting of two shipments each of Russian Urals and CPC oil. Reports indicate that Urals have been sold at a discount of $6 to $7 per barrel compared to dated Brent prices. Meanwhile, IOC has also acquired cargoes of Russian oil intended for January loading.
Since the imposition of sanctions by Washington on major Russian oil producers Rosneft and Lukoil in October, IOC has been buying sanctions-compliant Russian oil cargoes. Notably, BPCL opted out of purchasing Russian oil for December loading.
The majority of oil supplied through the Caspian Pipeline Consortium (CPC) is from Kazakhstan, with some Russian oil also sold through this route.
Neither BPCL nor IOC responded immediately to requests for comments. Other state refiners, including Mangalore Refinery and Petrochemicals Limited, Hindustan Petroleum Corporation, and the private firm HPCL-Mittal Energy Limited, have ceased purchasing Russian oil.
Conversely, Nayara Energy, partially owned by Rosneft, continues to process Russian oil exclusively as other suppliers have withdrawn following British and EU sanctions. Reliance Industries Limited, which operates the world’s largest refining complex, has stated that it will process any deliveries arriving after November 20 under its existing agreement with Rosneft for its India-focused refinery.
This report is published on December 5, 2025.
