Reliance Industries Ltd, operator of the world’s largest refining complex, is set to receive sanctions-compliant Russian oil in February and March after a one-month pause, four sources familiar with the matter told Reuters.
Reliance last received Russian crude in December after securing a one-month concession from the US that allowed it to wind down dealings with the sanctioned Russian oil producer Rosneft beyond a November 21 deadline.
Like other Indian refiners, Reliance will buy Russian oil from non-sanctioned sellers, the sources said, without elaborating on the number of February and March cargoes that the refiner has booked.
Industry sources told The Telegraph that RIL was drawn by good deals to pick up non-sanctioned cargo and it should not be seen as ‘resumption’ of Russian crude buying akin to pre-sanction days.
It is also unclear if RIL will continue to buy Russian oil beyond March.
It typically takes 40-60 days for refineries to receive cargo after booking as the process involves arranging tankers and securing insurance. Sources suggested orders with the non-sanctioned Russian producers may have been placed earlier this month.
West Asian crude
Despite Reliance’s return, India’s overall Russian oil imports are expected to stay subdued through February and March, the sources added.
Reliance had been importing Russian crude under a long‑term agreement with Rosneft for 500,000 barrels per day (bpd) for its 1.4 million bpd Jamnagar refinery complex in Gujarat.
The European Union has said from January 21 it will not take fuel produced at refineries that received or processed Russian oil 60 days prior to the bill-of-lading date.
Reliance has said it will process the cargoes that arrived after November 20 at its India-focused 660,000 barrels per day plant, allowing it to continue selling fuels to the EU from its 704,000 bpd export-oriented refinery.
Refiners in India, which became the top buyer of discounted Russian seaborne crude following the 2022 outbreak of war in Ukraine, are recalibrating their crude import strategies, raising purchases from West Asia as they shift away from Russia.
“We have faced instances where sanctions were imposed suddenly and we had to cut back,” Srinivas T, chief operating officer, refinery and marketing, Reliance, said last week.
Reliance had ramped up purchases from national oil companies elsewhere ahead of time to avoid spot market disruptions, he said.
Sumit Ritolia, lead research analyst (refining, supply) at market intelligence firm Kpler, pointed out that it is important to note that Russian crude itself is not sanctioned
“The execution risk lies in the wider supply chain where certain traders, intermediaries, vessels and service providers may be sanctioned or restricted, and over the last 2–3 months we have seen new intermediaries emerge to keep barrels flowing through cleaner, more ‘compliance-friendly’ routes,” Ritolia observed.
