IOC Buys Russian Crude At A Deep Discount

India's top oil company has bought up to 3 million barrels of crude oil that Russia offered at steep discounts to international prices.

The purchase was made through a trader and is the first since Russia's invasion of Ukraine on February 24 triggered international pressure for isolating the Putin government.

Sources aware of the matter said IOC bought Urals crude for May delivery at a discount of USD 20-25 a barrel to dated Brent.

The US and other western nations have imposed sanctions on Moscow, prompting Russia to provide oil and other commodities at discounted prices to India and other large importers.

IOC purchased modified terms that require the seller to deliver it to the Indian coast to avoid any complications.

Unlike the sanctions the US imposed on Iran over its controversial nuclear program, oil and energy trade with Russia has not been banned. This means international payment systems are available to settle any purchase.

India, which imports 85% of its oil needs, is looking to cut spiralling energy bills through purchases from anywhere it can get at cheaper rates.

The Oil Minister Hardeep Singh Puri said he has had discussions with Russian officials.