Major Indian refiner resumes imports of Russian oil – Bloomberg

Reliance had halted crude purchases to comply with US sanctions

India’s largest private oil refiner, Reliance Industries, has resumed buying Russian crude after previously halting purchases to comply with US sanctions, according to Bloomberg.

The US government imposed sanctions on Russian state-owned oil giants Rosneft and Lukoil in October, saying the measures were intended to increase pressure on Russia’s energy sector over the Ukraine conflict. The sanctions gave global companies, including Indian refiners, a November 21 deadline to wind down transactions with the two majors.

People familiar with the matter told Bloomberg on Wednesday that Reliance is sourcing discounted crude from non-sanctioned suppliers. The company contracted Aframax tankers from the Russian firm RusExport and is routing the barrels to its 660,000-barrel-a-day refinery at Jamnagar, a plant that supplies India’s domestic fuel market, the anonymous sources said.

Reliance, which has a long-term deal with Rosneft, announced last month that it would halt new purchases to ensure compliance with the sanctions. It said the final such cargo was loaded on November 12.

A company source told Reuters that ongoing deliveries represent “pre-existing transactions which are being wound down in a sanctions-compliant manner.”

Read more

India, the world’s third-largest oil consumer, became a key market for Russian crude following the escalation of the Ukraine conflict in 2022. Data from analytics firm Kpler shows Russia has been the South Asian nation’s top oil supplier since then, providing over 36% of India’s crude imports so far this year.

In response to the sanctions, key Indian refiners temporarily halted new orders and sought alternative supplies. Others, such as state-backed Indian Oil Corporation, have said they will continue purchasing oil from Russian producers that hadn’t been sanctioned.

Western countries have repeatedly targeted Russia. US President Donald Trump announced a 25% tariff on India in August as a penalty for its purchases of Russian oil, claiming the trade prolonged the Ukraine conflict. New Delhi has dismissed criticism over trade with Moscow, saying its energy policy is driven by national interest. Around the same time, the EU implemented its 19th package of sanctions targeting what Brussels claims is a Russian ‘shadow fleet’.

Moscow has said threats of sanctions or tariffs on its partners violate their sovereign rights.