Reliance Industries to Purchase Sanctions-Compliant Russian Oil in February–March

After a one-month suspension, sanctions-compliant Russian oil is expected to be delivered to India's Reliance Industries Ltd, which operates the largest refining complex in the world, in February and March. After obtaining a one-month US concession that permitted it to conclude its transactions with the sanctioned Russian oil giant Rosneft after a deadline of November 21, Reliance last received Russian crude in December.

Various media reports stated that Reliance, like other Indian refiners, will purchase Russian oil from unapproved vendors. However, reports did not specify how many cargoes the refiner has scheduled for February and March. Whether the private refinery will keep purchasing Russian oil after March is also uncertain. Let's find out latest developments on this stroy.

Reliance Continues to Back Russian Oil Producers

India's total imports of Russian oil are anticipated to remain low in February and March. Under a long-term contract with Rosneft, Reliance had been importing 500,000 barrels of Russian crude per day (bpd) for its 1.4 million bpd Jamnagar refinery complex in Gujarat. Fuel made at refineries that received or processed Russian oil 60 days before the bill-of-lading date would not be accepted by the European Union starting on January 21.

In order to continue supplying fuels to the EU from its 704,000 bpd export-orientated refinery, Reliance has stated that it will process the cargoes that arrived after November 20 at its India-focused 660,000 barrels per day plant. Following the start of the conflict in Ukraine in 2022, refiners in India, who were the largest purchasers of cheap Russian seaborne petroleum, are reevaluating their plans for importing crude and increasing their imports from the Middle East as they move away from Russia.

Reliance's chief operating officer for refineries and marketing, Srinivas T, stated last week that the company has had to make reductions in the past due to unexpected sanctions. He claimed that in order to prevent spot market disruptions, Reliance has increased its purchases from national oil companies elsewhere in advance.

RIL Denies Bloomberg's Claims

After the refiner resumed some purchases for domestic production, at least three tankers carrying Russian crude are pointing to Reliance Industries Ltd's (RIL) refinery on the west coast of India as their next stop. According to data analytics company Kpler (cited by Bloomberg), the ships carrying about 2.2 million barrels of Urals are currently signalling the massive Jamnagar complex and are anticipated to deliver their cargoes early this month.

On January 6, Reliance Industries Ltd vehemently denied allegations of Russian oil imports to its refinery in Jamnagar, claiming that such news stories are "blatantly untrue" and are "tarnishing" its reputation. The Mumbai-based business reaffirmed that it has not received any Russian oil imports in the last three weeks and does not anticipate receiving any Russian crude oil deliveries this month, citing a Bloomberg News article.