Amid sanctions, IOC buys 3 million barrels of Russian oil at a discount of $20 – $25/barrel

March 16: Indian OilCorporation (IOC), the country’s top refiner bought 3 million barrels of Russian Urals oil from Geneva-based trader Vitol for May delivery. This huge purchase by IOC was done at a time amid sanctions against Russia over Ukraine war. Vitol reportedly sold the cargoes at a discount of $20 – $25/barrel. This is the first purchase since Russia invaded Ukraine on 24 February.

Western sanctions against Russia have led many companies and countries to shun its oil, depressing Russian crude to record discount levels. IOC does not see any problem in paying for the cargo as oil as a commodity is not banned and it was not dealing with a sanctioned entity.