Mukesh Ambani’s Reliance to halt oil imports from Russia due to…; India’s PSUs to keep buying via…
Reliance is India’s largest buyer of discounted Russian oil and operates the world’s largest single-site oil refinery complex in Jamnagar.
Indian billionaire Mukesh Ambani Trust Industries The US plans to reduce Russian crude oil imports following new sanctions on Moscow-linked firms, PTI reported, citing sources. However, industry officials said state-run refineries can continue purchasing through intermediary traders for now.
Reliance buys Russian oil at discount
Ambani-led Reliance is India’s largest buyer of discount Russian oil and operates the world’s largest single-site oil refinery complex at Jamnagar in Gujarat. Reliance has purchased nearly half of the 1.7-1.8 million barrels per day of discounted Russian crude shipped to India. The company converts crude oil into petrol, diesel and aviation turbine fuel (ATF); much of this is exported at market prices to markets such as Europe and the United States, generating strong margins.
US imposes sanctions on Russian oil companies
US President Donald Trump imposed sanctions on Russia’s two largest oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil), accusing them of helping finance the Kremlin’s ‘war machine’ in Ukraine. This means that no entity, American or foreign, can establish business relationships with sanctioned Russian companies. Violators face civil or criminal penalties.
Reliance’s next step
Reliance has signed a 25-year agreement with Rosneft to purchase up to 500,000 barrels per day (25 million tonnes per year) of crude oil. But the company will now reduce and potentially stop all purchases from Russia, three sources with knowledge of the matter said. They said the company had large business interests in the United States and could not risk being scrutinized.
Reliance began “recalibrating” its imports shortly after the European Union adopted its 18th package of sanctions against Moscow in late July this year. Recalibration is nothing more than moving the import obligation to a different region. Sources said this could now be expedited. Transactions involving the two sanctioned Russian companies must be concluded by November 21.
