Reliance To Resume Sanctions-Compliant Russian Oil Imports In February–March

Reliance Industries Ltd is set to resume buying sanctions-compliant Russian crude oil in February and March after a one-month pause, following adjustments to its sourcing strategy amid tightening Western restrictions, according to four sources familiar with the matter. According to Reuters, the private refiner will source cargoes only from non-sanctioned Russian sellers.

Reliance, which operates the world’s largest refining complex at Jamnagar in Gujarat, last received Russian crude in December after securing a one-month concession from the United States that allowed it to wind down dealings with the sanctioned Russian oil producer Rosneft beyond a November 21 deadline, Reuters reported.

Like other Indian refiners, Reliance will buy Russian oil only from non-sanctioned entities, the sources said, without disclosing the number of cargoes booked for February and March. It remains unclear whether the company will continue to import Russian crude beyond March.

Reliance did not respond to a Reuters email seeking comment.

Despite Reliance’s return to the Russian market, India’s overall imports of Russian oil are expected to remain subdued through February and March, the sources added, as refiners raise purchases from the Middle East. Reported Reuters, Indian refiners are recalibrating their crude import strategies after years of heavy reliance on discounted Russian seaborne supplies.

Reliance had been importing Russian crude under a long-term agreement with Rosneft for about 500,000 barrels per day (bpd) for its 1.4 million bpd Jamnagar refinery complex. However, the European Union has said that from January 21 it will not accept fuel produced at refineries that received or processed Russian oil within 60 days prior to the bill-of-lading date.

To comply with these rules, Reliance has said it will process cargoes that arrived after November 20 at its India-focused 660,000 bpd plant, allowing it to continue selling fuels to the EU from its 704,000 bpd export-oriented refinery, Reuters reported.

India became the top buyer of discounted Russian seaborne crude following the 2022 outbreak of the war in Ukraine. However, refiners have increasingly turned to Middle Eastern national oil companies as they reduce exposure to sudden sanctions risks.

“We have faced instances where sanctions were imposed suddenly and we had to cut back,” Srinivas T, chief operating officer, refinery and marketing, at Reliance, said last week. He added that the company had ramped up purchases from other national oil companies in advance to avoid disruptions in the spot market.

(With inputs from Reuters)