ONGC Videsh Ltd failed to attract bidders for its Russia Oil due to sanctions, sold one cargo of Russian Sokol oil to Hindustan Petroleum Corp and Bharat Petroleum as per a report.
After several corporations and nations rejected purchases from Moscow owing to sanctions against Russia for its invasion of Ukraine, Indian companies are purchasing Russian oil at heaving discounts.
The overseas investment arm of Oil and Natural Gas Corp owns a stake in Russia’s Sakhalin-1 project, which it sells through inviting tenders. It invited tenders for the Sokol crude oil cargo for May loading in March but did not receive bids.
According to the sources, HPCL and BPCL were able to negotiate a lower price for the shipment. As a result, HPCL has made its first purchase of Sokol crude, while BPCL had previously purchased the grade in 2016.
Notably, India, the third-largest oil importer and user, did not join the west with its sanctions. Hence, ONGC Videsh is looking forward to selling more cargo to Indian refiners if it fails to find buyers abroad. The two refiners will pay ONGC in rupees.
Russia found no buyers for its oil after the west imposed financial sanctions after its Ukraine invasion. First, the country was barred from SWIFT transactions, making it hard for companies to carry out operations. Later, the USA went on to ban Russian Oil from isolating it economically.
While India called for the end of violence in Ukraine, it had refrained from condemning Russia’s actions. Moreover, after much contemplation, the country looked forward to ways to buy Russian oil in the absence of a financial medium to finalise such transactions.
But now, the Indian refiners seem to have stepped forward to take up the opportunity to buy oil at exceptional discounts from Moscow.
