India, the world's third-largest oil importer, has made it clear that it will only purchase Russian crude if it is supplied by companies and ships that are not under U.S. sanctions. Speaking at the India Energy Week conference, Oil Secretary Pankaj Jain emphasized that it is the responsibility of suppliers to ensure compliance with India's requirements.

Western sanctions, particularly from the U.S., have disrupted global oil trade, making it more challenging for buyers of discounted Russian crude to continue their purchases. While India primarily follows UN sanctions rather than those imposed by individual nations, concerns over secondary sanctions from the U.S. have complicated dealings with Russian oil, especially since Indian banks and businesses have significant ties to the American financial system.

Recent U.S. sanctions on Russia’s oil supply chain have already affected Indian refiners, driving up tanker freight costs and prompting some buyers to avoid ships linked to sanctioned entities. Indian refining companies have been firm in their stance, informing Russian suppliers that they will not accept cargoes involving sanctioned entities or vessels.

Jain reiterated that Indian companies take oil deliveries at their import destinations, not at ports of export, meaning the burden of ensuring compliance falls entirely on sellers. "If a cargo meets their internal diligence standards, they will accept it," he said, stressing that suppliers must ensure their shipments align with India's compliance needs.

During the conference, Indian companies engaged in discussions with Russian business representatives, including firms like Novatek and Sber Bank, exploring potential energy collaborations. However, Indian officials remain cautious, prioritizing risk-free transactions and placing the responsibility of clean logistics entirely on sellers.

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