Refiners in India, the world’s third-largest oil importer and consumer, have been snatching up Russian oil through spot deals since Russia’s invasion of Ukraine on February 24, taking advantage of deep discounts as the other buyers withdraw.
BPCL and Trafigura did not immediately respond to requests for comment.
The state-owned refiner regularly buys from Russia’s Urals for its 310,000 barrel per day (bpd) Kochi refinery in southern India.
With the purchase of BPCL, India has so far reserved at least 16 million barrels of Russian oil since February 24, which is similar to imports for the whole of 2021, according to Reuters calculations.
The Urals’ discount to Brent dat has reached a record for the post-Soviet era, with some buyers shying away from Russian oil. Unlike many Western countries, India has not banned imports of Russian oil.
Indian Foreign Minister S. Jaishankar said on Wednesday that the government was working to stabilize economic transactions with Russia, a day after India condemned the killings of civilians in Ukraine and called for an independent investigation.
Jaishankar told parliament lawmakers that Russia remained a key economic partner and that efforts were underway to “stabilize economic transactions between India and Russia.”
Last week Indian Finance Minister Nirmala Sitharaman said India would buy Russian oil if it was available at a reduced price.
“India’s overall interest is what is kept in mind….I would put my country’s national interest first, and I would keep my country’s energy security first,” he said. she said.