Ketaan Ram Kataria
New Delhi: State-owned Indian Oil Corporation (IOCL) has paused discussions with Russia’s Rosneft on a new long-term crude oil supply agreement, citing evolving global geopolitical conditions. The move comes amid rising uncertainty around international sanctions and the broader energy trade landscape.
“We have paused discussions on a long-term crude oil supply deal with Rosneft due to geopolitical uncertainties. This decision is based on evolving market conditions and is not related to U.S. sanctions. Our share of Russian crude imports has decreased due to commercial factors, not political pressures. We remain focused on ensuring a stable crude supply for our refineries.” IOCL Chairman AS Sahney said.
The share of Russian oil in IOCL’s import basket has declined to 22% in FY25 from 30% in FY24. Sahney stressed that the reduction is purely due to commercial considerations, not political pressure or sanctions.
Meanwhile, U.S. policy remains uncertain. While former President Donald Trump has suggested easing some sanctions on Russia, there is also speculation about potential “secondary sanctions” targeting countries that continue purchasing Russian crude.
IOCL reported a strong 57.7% year-over-year growth in consolidated net profit for Q4 FY25 at Rs 8,123.64 crore, despite reducing Russian imports. However, as a result of declining crude oil prices worldwide, annual revenues dropped precipitously to Rs 13,597 crore, a 67% decrease from Rs 41,729 crore in FY24.
