Indian private company Reliance Industries Ltd., which owns the worldʼs largest oil refining complex, has resumed imports of Russian crude oil at a discount.
Bloomberg reports this, citing sources.
After the start of Russiaʼs full-scale invasion of Ukraine, the Indian company Reliance became the main buyer of Russian oil.
However, after the US imposed sanctions on Russiaʼs largest oil and gas companies “Rosneft” and “Lukoil”, on October 22, Reliance stopped purchasing oil from Russia.
Now Indiaʼs largest importer is buying raw materials from Russian suppliers who are not subject to sanctions. In particular, it has signed a contract with “Rusexport”.
Reliance has chartered tankers and is sending crude to the countryʼs largest refinery in Jamnagar with a capacity of 660 000 barrels per day, which serves the domestic market.
The resumption of supplies could partially offset a significant reduction in Indiaʼs oil imports. While in November, purchases amounted to 1.77 million barrels per day, in December they could drop to 1.2-1.5 million, Reuters writes, citing traders.
According to estimates by Indian officials, December imports could fall as low as 800 000 barrels per day.
What preceded
On October 23, the United States imposed sanctions on “Rosneft” and “Lukoil", Russiaʼs two largest oil and gas companies. A number of their subsidiaries were also added to the sanctions list. The US imposed the sanctions "due to Russiaʼs lack of serious commitment to the peace process".
After that, Reuters wrote that Chinaʼs state-owned oil companies suspended purchases of Russian oil transported by sea.
India is also reportedly looking to cut back on Russian oil imports to comply with US sanctions, and is looking with China for alternative sources of supply from the Middle East, Africa and Latin America.
Indian Oil Corpʼs chief financial officer Anuj Jain said the company "will continue to buy Russian oil if prices meet sanctions conditions".
On October 31, Reuters reported that Indiaʼs largest refinery had purchased five shipments of Russian oil for delivery to an Indian port in December. Thatʼs 3.5 million barrels.
On December 1, it became known that Indian state-owned oil refiners “Indian Oil Corp.” and “Bharat Petroleum Corp.” purchased Russian oil for January deliveries, taking advantage of discounts.
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