US Sanctions On Russian Oil Won't Disrupt India's Energy Security: Indianoil Chief

(MENAFN- KNN India) New Delhi, Jan 28 (KNN) The recent US sanctions targeting Russian oil exports will not impact India's energy security, according to Arvinder Singh Sahney, chairman of IndianOil, India's largest refiner and fuel retailer.

In his first public statement on the matter, Sahney assured that India's diversified crude procurement strategy and technical flexibility would ensure uninterrupted supply.

“We are still assessing how the situation unfolds, but I am confident that crude availability for Indian refineries will remain unaffected,” Sahney said, adding that both public and private sector refineries are equipped to handle such disruptions.

“India sources crude from a wide network, including the Gulf, Africa, the Americas, and both OPEC and non-OPEC producers. New suppliers like Brazil and Guyana are also emerging. We have extensive contracts and alliances, which leave us well-positioned to adapt.”

Sahney's confidence may also stem from the limited scope of the sanctions. The new curbs target around 15 per cent of Russia's oil exports, predominantly sweet ESPO-grade crude, and 183 vessels from Russia's 600-strong tanker fleet. Key Russian producers, including Rosneft, remain unsanctioned.

On the global oil market, Sahney predicted stable prices between USD 75 and USD 80 per barrel this year, playing down fears of major fluctuations.

IndianOil's latest financial report revealed a net profit of Rs 2,873.5 crore for the December quarter-a sharp drop from Rs 8,063.6 crore in the same period last year-due to inventory and foreign exchange losses, despite record sales and robust operations.

Sahney noted that IndianOil is taking a cautious approach to Russian crude, reducing its share from 30–35 per cent to minimise risks.

“We're not actively seeking Russian crude in the spot market at the moment,” he said, highlighting concerns about sanctions targeting the oil export chain, including service providers, tankers, and insurers.

Looking ahead, Sahney welcomed the potential increase in global oil and gas supply from the US but emphasised India's commitment to purchasing energy from the most competitive sources.“Our government has been clear-price competitiveness will determine our choices.”

(KNN Bureau)

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