Reliance Industries Ltd has resumed purchases of discounted Russian crude, sourcing barrels from non-sanctioned suppliers and routing them to its refinery in Gujarat, Bloomberg reported, citing people familiar with the matter.
India’s largest refiner has contracted Aframax tankers from RusExport and is directing the shipments to its 660,000-barrel-per-day refinery, which supplies fuel to the domestic market, the people said, requesting anonymity as the information is sensitive. The move is expected to partially offset the recent decline in India’s Russian oil imports, which officials have indicated could more than halve this month.
Reliance had paused Russian crude purchases after the United States sanctioned Rosneft and Lukoil on October 22, allowing refiners a month to wind down transactions with the two producers. The sanctions have forced Indian refiners to seek supplies from non-sanctioned Russian entities or turn to costlier alternatives, even as overall Russian flows were expected to drop sharply.
According to the people cited, Reliance, which operates the world’s largest single-site refining complex at Jamnagar, was granted an additional month to receive cargoes contracted prior to the October 22 deadline.
