IOC signs deal with Russian firm to import another 3 million barrels of crude

Indian Oil Corporation (IOC) has signed a deal with a Russian oil company to import 3 million barrels of crude, according to a report.

It’s a company-to-company deal, NDTV quoted sources as saying, without mentioning the Russian firm at the other end of the deal.

IOC, the country’s top energy firm, has already bought around 3 million barrels of crude that Russia had offered at a steep discount – $20-$25 a barrel – to prevailing international rates. That purchase, made through a trader, was the first since Russia’s February 24 invasion of Ukraine.

Also read: Why India is shopping for Russian oil, and why the West is upset

As the US and other western nations slapped sanctions on Moscow, Russia has begun offering oil and other commodities at discounted prices to India and other large importers. 

Historically, India’s oil imports from Russia have been low due to high transportation costs. The country buys just 1.3 per cent of all its oil needs from Russia.

Global crude oil prices have surged to above $100 a barrel – with the benchmark Brent crude touching multi-year highs of near $140 a barrel at one point – since Russia’s invasion of Ukraine.

India depends on crude oil imports for more than 80 per cent of its energy needs.