Refiner HPCL trims Russian crude, IOC resumes selective buys from non-sanctioned firms

State-run Hindustan Petroleum Corporation Limited (HPCL) said it processed only 5% Russian crude in 2Q FY 2026, citing poor economics and tightening US sanctions on Russian entities and shippers, The Economic Times reports. The refiner clarified it is not significantly dependent on Russian oil and will comply with global norms. HPCL-Mittal Energy Ltd, a public-private JV refiner, also suspended purchases of Russian oil.

Meanwhile…: Indian Oil Corporation (IOC), another state-run refiner, has resumed limited Russian oil purchases, buying five cargoes for December delivery from non-sanctioned entities, Reuters reports. The deals, worth around 3.5 mn barrels of Russian ESPO crude, were secured near parity with Dubai benchmarks for an eastern Indian port. IOC had earlier cancelled up to eight shipments supplied by subsidiaries of sanctioned Russian companies.

India diversifies imports: India’s crude imports from the US surged to about 540k barrels per day as of late October — the highest since 2022 — as refiners steer clear of Russian supplies, the business daily added, citing Kpler data.

With demand from Chinese refiners softening, discounted ESPO barrels have become attractive for Indian buyers, even as New Delhi balances energy security with compliance with Western sanctions.