Indian Oil Corp (IOC) is seeking high-sulphur oil from the spot market in its first sour crude import tender since March 2022, expecting the latest U.S. sanctions to hit supplies from Moscow, trade sources said on Thursday.

Indian Oil Corp is buying Middle Eastern and African crude to replace Russian volumes affected by U.S. sanctions.

Last week the U.S. Treasury imposed sanctions on Russian oil producers Gazprom Neft and Surgutneftegaz, as well as insurers Ingosstrakh and Alfastrakhovanie Group. The sanctions also targeted 183 vessels used to transport Russian oil, but the U.S. has allowed a wind-down of some energy-related transactions until March 12.

Indian Oil Corp (IOC), the country's top refiner, has bought 7 million barrels of spot Middle Eastern and African crude oil via tenders, including a rare purchase of Abu Dhabi's Murban, as U.S. sanctions are expected to hit supplies from Russia,

India is now staring at the possibility of an oil shock after the U.S. decided to implement sweeping sanctions on Russia’s oil industry.

External affairs ministry spokesperson Randhir Jaiswal indicated that India had no plans to reduce oil purchases from Russia following the US sanctions

It is India's first tender for sour crude imports since March 2022. IOC and other Indian refiners have significantly increased purchases of Russian oil over the past two years, taking advantage of discounted prices after the West imposed sanctions on Moscow over its full-scale invasion of Ukraine in 2022.