New Delhi, Aug. 2 -- India continues to buy oil from Russia notwithstanding the punishing penalty and calling out by the US earlier this week, and it is even reaping a bigger discount.

State-owned refiners-Indian Oil Corp Ltd (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL)-continue to buy oil from Russian suppliers, and negotiations are underway for spot deals, said two people in the know of the developments.

One of the two people mentioned above said that over the past few days, two cargoes of Russian oil had been purchased by Indian refiners with better discounts than usual.

"OMCs (oil marketing companies) are negotiating for Russian oil supplies currently. There is no decision as to go slow or stop Ru...